FAW Acquires Zhuoyu Technology Co., Ltd., Accelerating Smart Driving Layout

In the field of intelligent driving, FAW Group continues to deepen its layout by not only bringing together the "Di Da Hua Mo" (Horizon Robotics, Zory, originally DJI Automotive, Huawei, and Momenta) as Tier 1 suppliers of China's intelligent driving solutions but also expanding its cooperation with Zory through equity acquisition to increase its influence over the intelligent driving supply chain.

According to the information published by the State Administration for Market Regulation on September 22, China First Automobile Co., Ltd. (hereinafter referred to as FAW Group) signed an agreement with New Territory Technology Company Limited (hereinafter referred to as New Territory) and Shenzhen Zhuoyu Technology Co., Ltd. ("Zhuoyu Technology") to increase capital and acquire the equity of Zhuoyu Technology held by New Territory.

After the transaction, FAW Group will hold 35.80% of the equity in Zhuoyu Technology, while New Territory will hold 34.85% of the equity in Zhuoyu Technology. Both parties will jointly control Zhuoyu Technology.

In early 2024, FAW and Zhuoyu Technology signed a strategic cooperation agreement on intelligent driving, jointly developing the Hongqi Simnav intelligent driving system, which is equipped on the Hongqi Tiangong series products. The Simnav systems equipped on Hongqi Tiangong 06 and Hongqi Tiangong 05 both adopt Zhuoyu's inertial navigation three-vision solution. Without relying on high-precision maps and LiDAR, it achieves advanced intelligent driving functions such as highway NOA and urban NOA. This lowers the threshold for advanced intelligent driving experiences to the 160,000 Yuan level, promoting equal access to intelligent driving experiences.

Attracting investment from FAW Group is largely due to Zhuoyu Technology's "Oil-Electric Intelligence" concept. In August, FAW-Volkswagen and Zhuoyu Technology launched the IQ.Pilot enhanced driving assistance system, which will be gradually implemented in models such as the Sagitar L, Tayron L, Magotan, and Talagon, achieving the rollout of highway navigation assistance for fuel vehicles.

At the same time, Zhuoyu Technology's "Intelligent Integration of Oil and Electricity" concept enables the Hongqi Sihan Intelligent Driving system to be applied to Hongqi brand fuel vehicles, further enhancing the Hongqi brand's rapid establishment of intelligent advantages in the fuel vehicle sector.

FAW Group's autonomous driving circle has brought together the four major autonomous driving teams: DiDi, Baidu, Huawei, and Momenta.

In February this year, FAW Bestune and Horizon Robotics reached a strategic partnership to engage in comprehensive collaboration in the field of intelligent driving solutions. The focus will be on advancing the development of high-level intelligent driving technologies, injecting powerful intelligent driving technological capabilities into the Yueyi New Energy product lineup.

The intelligent driving system developed in collaboration with Horizon and other partners enables the FAW Bestune Yuyi series products to achieve various capabilities ranging from parking to parking and L3 autonomous driving, creating a "frequently used and constantly new" smart travel experience.

The cooperation with Huawei covers a wide range. Audi under FAW has equipped its A5L and Q6L e-tron models with Huawei's Qian Kun intelligent driving system. FAW Jiefang has also deepened its strategic partnership with Huawei around innovations in AI large model technology, intelligent driving, and smart cockpits.

In addition, Hongqi will launch models using Huawei's full-stack solutions in 2026, featuring functions such as QianKun intelligent driving, HarmonyOS cockpit, QianKun vehicle control, and QianKun vehicle cloud services. Sources indicate that Huawei's "smart all-in-one" will first focus on the "Hongqi 9 series" models.

FAW Toyota has partnered with Momenta. The FAW Toyota bZ5 is equipped with the Toyota Pilot intelligent driving assistance system, which is built with the collaboration of Momenta 5.0 urban assistance driving system and TSS Intelligent Safety. It utilizes a high-performance chip with 544 Tops computing power and 33 intelligent sensing hardware components, enabling over 30 functions, including urban and highway navigation intelligent driving assistance and intelligent parking assistance.

FAW Group has assembled the "Di, Da, Hua, Mo" four major intelligent driving teams, creating a comprehensive intelligent driving ecosystem. By achieving joint control over Zhuoyu Technology through equity acquisition, FAW Group not only promotes collaborative innovation in the intelligent driving field under its Hongqi brand but also strengthens its control over the supply chain in the intelligent driving sector, ensuring competitiveness in the "arms race" of smart technology.