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Geely and Maichi Invest in Smart Driving Tech
March 3 – Chinese automotive giant Geely Holding Group is forming a CNY4.8 billion (USD659 million) joint venture (JV) with affiliates and autopilot startup Maichi Zhixing to accelerate smart driving technology development.
The JV will be funded by Geely's auto parts subsidiary Jirun Automobile, Maichi, QL Partnership, Lotus Robotics, and an upcoming employee incentive platform, according to Geely Auto, Volvo Cars, and Polestar’s parent company.
Intensifying Competition in Autonomous Driving
China’s intelligent driving sector is heating up. BYD (SHE: 002594) recently announced it will equip all models with its God's Eye autonomous driving system. Meanwhile, Geely has strengthened collaborations with Qianli Technology and AI startup Stepfun to integrate more artificial intelligence features.
Joint Venture Ownership Breakdown
- Jirun, Maichi, and QL will each hold 30% of the JV.
- Lotus Robotics and the employee incentive platform will each hold 5%.
- Jirun will contribute CNY1.3 billion (USD178.4 million) in intelligent driving assets and CNY200 million (USD27.5 million) in cash.
- Maichi and Lotus will inject technology assets into the JV.
Strategic Synergies for Autonomous Driving Innovation
The JV aims to integrate strengths across intelligent driving technology, R&D, funding, and industrial resources to boost efficiency and cost reduction while maintaining a competitive edge. Geely noted that it will collaborate closely with the JV to enhance smart driving systems and product applications, ensuring a safer and more convenient mobility experience.
Geely's Expanding Smart Mobility Ecosystem
- Lotus and QL Partnership are both linked to Geely.
- Geely acquired a 51% stake in Lotus, the British luxury sports car brand, in 2017.
- QL Partnership is a limited partnership formed by Qianli Technology and state-owned entities in Chongqing.
- Qianli Technology (formerly Lifan Technology Group) received Geely’s investment during its restructuring in 2020.
