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China orders recall of millions of cars over door-handle safety

Recall affects Tesla, Xiaomi and four other automakers due to concerns over emergency door-release mechanisms. China to ban retractable handles from 2027.

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Priya Anand · Equities & Earnings Desk · 22 Aug 2026 · 10:12 · 1 min read
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China orders recall of millions of cars over door-handle safety

China’s market regulator ordered the recall of several million vehicles from Tesla, Xiaomi and four other automakers after identifying safety issues with electronic door handles, which are difficult to operate in emergencies.

The State Administration for Market Regulation said the recall primarily involves vehicles whose mechanical emergency release mechanism is hard to locate or activate during accidents. Tesla alone must recall nearly 3 million Model 3, Model Y, Model S and Model X units, the agency said on Friday.

Tesla stated the issue arises when the electronic system fails and the mechanical release—intended to allow passengers to exit the vehicle—becomes difficult to find, potentially delaying rescue efforts. The company plans to address the problem with a software update and by adding a warning label.

Other automakers affected include Xiaomi, Leapmotor, Xpeng, Zeekr and Lynk & Co. The recall follows broader concerns over retractable door handles, a design popularized by Tesla and later adopted by many electric-vehicle manufacturers.

China will prohibit the use of retractable door handles from 2027, becoming the first country to enforce such a ban. The move comes after multiple fatal accidents linked to the design raised scrutiny over passenger safety.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Priya Anand
Equities & Earnings Desk

Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.

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