Chinese auto manufacturers Xpeng (HKG:9868) and Li Auto (HKG:2015) were granted licenses by mainland regulators to begin testing advanced autonomous driving technologies, the South China Morning Post reported Tuesday.

The carmakers were allowed to test Level-3 autonomous driving vehicle technologies in designated urban areas, joining Chongqing Changan Automobile (SHE:000625) and BAIC Motor (HKG:1958) who were granted China's first such permits earlier this week.

Xpeng would be allowed to conduct tests in its native Guangzhou, while Li Auto could do the same in designated areas in Beijing, where it is based, the report said.

Autonomous driving levels range from the lowest Level-0 to the highest Level-5, with Level-3 allowing vehicles to perform automated dynamic driving tasks while requiring a human driver to take control when requested.

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