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China's ECARX acquires stake in Volvo's autonomous driving subsidiary

chinadaily.com.cn | Updated: 2021-07-14 17:22
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An employee at a Volvo car dealer, wearing a protective mask is seen in the showroom in Brussels, Belgium, May 28, 2020. [Photo/Agencies]

Swedish carmaker Volvo Cars said on Wednesday that its autonomous driving software development subsidiary Zenseact has received a strategic investment by ECARX, a Chinese provider of connected car technology.

ECARX will take a 15 percent share in Zenseact and make a strategic investment in the company's continued development of autonomous driving and safety technologies. Financial terms of ECARX's investment in Zenseact have not been disclosed.

Building on Zenseact's global software platform, the companies also plan to collaborate on autonomous driving for the Chinese market, said Volvo.

Volvo said the move will strengthen Zenseact's presence in China, the world's largest automotive market, allowing it to accelerate technology deployment in the country.

"Zenseact is a pioneer in self-driving technology, and this strategic investment from ECARX enables us to scale up quicker in China," said Hakan Samuelsson, chief executive of Volvo and chairman of the board at Zenseact.

"The investment strengthens our footprint in China and gives Zenseact a clear way to grow more quickly," said Samuelsson.

Zenseact's first delivery will be technology for next-generation Volvo and Polestar cars, such as active safety features and an unsupervised autonomous driving function for highways.

The strategic investment allows Zenseact to capitalise on the accelerating demand for AD systems in China. It is also working with LiDAR technology firm Luminar to commercialise a complete autonomous driving solution.

"The time has come to take top-end AD and ADAS services to more Chinese consumers," said Odgard Andersson, chief executive at Zenseact.

"ECARX is an innovative tech company with a strong presence in China. Drivers across China will soon be able to access a new software- and AI-defined safety where we can help avoid accidents, save lives and make riding and driving more enjoyable," said Andersson.

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