BYD and FAW Group have expressed interest in investing in DJI Automotive, the automotive division of Chinese drone manufacturer DJI, emerging as a significant contender to Huawei in China’s smart driving sector. Local media reports indicate that DJI Automotive and Huawei’s automotive business could become essential options for established car manufacturers with limited capabilities in smart driving research and development.
Reports suggest that DJI Automotive is seeking an investment of approximately 10 billion yuan ($1.4 billion) from various investment institutions, marking a significant development in the industry. Similarly, Huawei has made strides by spinning off its automotive business unit and establishing a joint venture valued at over RMB 100 billion with Changan Automobile.
The rise of smart driving technology has placed pressure on traditional car companies, with firms like Nio, Xpeng, Li Auto, and Huawei-backed Aito aggressively advancing smart driving solutions. Consequently, traditional carmakers are considering options such as Huawei’s automotive business and DJI Automotive for potential collaboration.
Huawei has reportedly approached several car manufacturers, including Seres, Chery, Anhui Jianghuai Automobile Group, Beijing Automotive Group, Mercedes-Benz, Audi, and FAW, seeking investment in its joint venture. However, concerns have arisen regarding the high valuation and influence that participating companies will have in the joint venture.
Notably, a company that has already partnered with Huawei’s automotive business unit intends to conduct due diligence on DJI Automotive, indicating potential future collaborations. The overall valuation of DJI Automotive is approximately RMB 10 billion, and negotiations with potential partners may result in a lower valuation based on available resources.
Operating independently from the drone maker since October 2022, DJI Automotive has recently unveiled its next-generation smart driving solution, offering L2+ assisted driving functions without high-precision maps or LiDAR at a relatively low computing power. This positioning has established DJI Automotive as a provider of cost-effective smart driving solutions, with its technology already being utilized in models such as SAIC-GM-Wuling’s Baojun-branded Yunduo EV and the Chery iCar 03.
Furthermore, a report has indicated that BYD intends to integrate DJI Automotive’s assisted driving solution into some of its models, highlighting the increasing interest and potential collaborations among industry players.
The escalating competition and innovation in China’s smart driving industry underscore the fact that established car companies are seeking to align themselves with leading technology providers like DJI Automotive and Huawei’s automotive business to maintain competitiveness and drive future growth in the rapidly evolving automotive landscape.
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