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Privacy and Security Risks in Chinese Electric Vehicles: Unraveling the Data Dilemma

Privacy and Security Risks in Chinese Electric Vehicles: Unraveling the Data Dilemma

The rapid rise of electric vehicles (EVs) has transformed the automotive industry, promising cleaner energy and reduced emissions. But as we enjoy this automotive transformation, we must also grapple with the intricate web of data collection and privacy concerns woven into these high-tech machines. 

One particular area of interest is Chinese-made EVs, which dominate the global market. This blog post delves into the privacy and security risks associated with these vehicles, drawing insights from a recent investigation.

The Cyber Angle

In 2022, Tor Indstøy purchased a Chinese electric vehicle for $69,000 to accommodate his growing family.

Indstøy had an ulterior motivation for purchasing an ES8, a luxury SUV from Shanghai-based NIO Inc. The Norwegian cybersecurity specialist wanted to investigate the EV and see how much data it collects and transmits back to China.

He co-founded Project Lion Cage with several industry acquaintances to examine his SUV and release the findings.

Since its inception in July 2023, Indstøy and his crew have provided nearly a dozen status reports. These have largely consisted of them attempting to comprehend the enormously complex vehicle and the operation of its numerous components.

The $69,000 Chinese Electric Vehicle Under Scrutiny

In a fascinating experiment, Norwegian cybersecurity researcher Tor Indstøy purchased a $69,000 Chinese electric vehicle—an ES8 luxury SUV manufactured by Shanghai-based NIO Inc. His motive? To dissect the vehicle, uncover its data practices, and shed light on potential risks. 

The project, aptly named “Project Lion Cage,” aims to answer critical questions about data privacy and security in EVs.

The Complexity of EVs: A Data Goldmine

Electric cars are not mere transportation devices; they are rolling data centers. Unlike their gas-powered counterparts, EVs rely heavily on electronic components—up to 2,000 to 3,000 chips per vehicle. 

These chips control everything from battery management to infotainment systems. Each chip can collect and transmit data, creating a vast information flow network within the vehicle.

However, studying EVs is also a challenge. Traditional cybersecurity tools designed for PCs and servers need to improve when dealing with the intricate architecture of electric cars. Researchers like Indstøy face unique challenges as they navigate this uncharted territory.

Privacy Concerns: What Data Lies Beneath?

Indstøy and his team have identified potential areas of concern for the NIO ES8, but no major revelations have been made.

One example is how data gets into and out of the vehicle. According to the researchers, China received over 90% of the communications, which contained data ranging from simple voice commands to the car to the vehicle's geographical location. Other destinations included Germany, the United States, the Netherlands, Switzerland, and others.

Indstøy suggests that the ambiguity of some communications could be a source of concern. For example, the researchers discovered that the car was regularly downloading a single, unencrypted file from a nio.com internet address, but they have yet to determine its purpose.

The Geopolitical Angle

China’s dominance in the EV market raises geopolitical concerns. With nearly 60% of global EV sales happening in China, the data collected by these vehicles becomes a strategic asset. 

Governments worry about potential espionage, especially given the close ties between Chinese companies and the state. The Biden administration’s cautious approach to Chinese-made EVs reflects these concerns.