BYD and FAW Group are reportedly exploring a potential investment in Chinese drone giant DJI Technology’s smart driving business unit, 36Kr reports.
Negotiation progress
According to the report, BYD and FAW Group are now in “advanced talks” with DJI Automotive as they seek to invest in the latter’s smart driving business.
BYD and FAW have already sent the investment intent letter to the Chinese autonomous driving company as they proceed with the financing process. However, the three parties have yet to confirm the news.
As for valuation, DJI Automotive is reportedly seeking approximately 10 billion yuan ($1.4 billion) from investment institutions.
BYD and FAW Group’s interest in DJI Automotive is unsurprising, considering that it is among the few local companies that can develop partially automated driving software.
Significance
BYD and FAW Group’s strategy to partner with a local autonomous driving company aligns with the current market trend, where an increasing number of automakers and suppliers are expanding their partnership to boost partially automated driving passenger car development.
In addition, such partnerships will also aid them in cutting costs, enabling them to offer the product at an affordable price.
Notably, offering cars equipped with smart driving features is crucial for Chinese companies like BYD and FAW Group to meet the customers’ growing preference for more advanced vehicle technology.
About DJI
DJI Technology established its intelligent driving department in 2019. DJI Auto officially became a separate unit in October 2022, according to Yicai Global.
Since then, it has advanced as one of the country’s two main smart-driving solutions developers, including Huawei Technologies’ Intelligent Automotive Solution Business Unit.
In April 2023, the company introduced its new-generation intelligent driving platform, “Chengxing.” Chengxing’s autopilot system can navigate urban areas without relying on high-precision maps or light detection and ranging, resulting in low costs.
SAIC-GM-Wuling’s Baojun Yunduo and Chery Automobile’s iCar 03 already feature the company’s groundbreaking Chengxing. Excitingly, DJI Auto stated that its other automaker partners will soon integrate the innovative platform into their models on a “large scale.”
