GAC plans to invest up to $149 million in Didi's autonomous-vehicle subsidiary along with another company.
(A GAC concept car shown at the April 2023 Shanghai auto show. Image credit: CnEVPost)
Guangzhou-based Chinese auto giant GAC Group plans to invest in ride-hailing giant Didi Chuxing's autonomous driving business, as local carmakers increase their bets on autonomous driving technology.
GAC's board meeting today approved a decision on the investment, planning to invest up to $149 million in Didi's autonomous-vehicle subsidiary, Voyager Group Inc, along with a local company, according to an exchange announcement today.
GAC Capital, a wholly-owned subsidiary of GAC, will co-fund a special fund of up to $155 million equivalent in RMB with Guangzhou Development District Investment Group, a local government-backed company, in equal proportions to facilitate the investment.
GAC will increase its capital to GAC Capital by not more than $75 million equivalent in RMB for the establishment of the special fund and participation in this investment, according to the announcement.
GAC's announcement did not reveal much more, including the valuation of Didi's autonomous driving business.
Didi began autonomous driving research and development in 2016. In August 2019, Didi upgraded its autonomous driving division to an independent company.
On May 31, 2021, local media outlet LatePost reported that Didi's autonomous driving business would close a new round of financing amounting to more than $300 million, with GAC investing $200 million.
Following the investment, Didi's autonomous driving business would be valued at more than Pony.ai, according to the report.
However, nothing has happened with the deal since then.
GAC's new energy vehicle (NEV) brand, GAC Aion, announced on May 17, 2021 a strategic partnership with Didi's autonomous driving division in order to jointly build driverless NEVs.
On May 10 this year, GAC Aion announced that it had signed a cooperation agreement with Didi to jointly launch the AIDI program, a driverless new energy production vehicle project.
GAC Aion will set up a joint venture with Didi to jointly launch L4 driverless NEVs, the company said at the time, adding that this will be the first time in China that a car company and an autonomous driving company will advance the mass production of driverless EVs in the form of a joint venture.
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