The functions described in Tesla's statement are similar to the "Full Self-Driving" capability it offers in the United States.

Cars with that capability are not fully autonomous, and are meant to be used under driver supervision.

The news was first reported by the state-owned Shanghai Daily on Tuesday.

Tesla said in a statement on its WeChat page that it will gradually roll out a software update that includes "automatic Autopilot-assisted driving on city streets", as well as a rearview mirror function that detects whether drivers are paying attention.

The update "has already been released for some car models, and will be gradually rolled to other suitable car models", Tesla said.

China is a major market for Tesla, where the company has two factories and is trying to compete with fast-growing domestic manufacturers.

The firm has been working to gain approval for FSD in China, which needs to be compliant with strict data and privacy laws.