The smart connected car market remains promising, with strong financing activity in the first half of the year.

In the first half of 2020, the global COVID-19 pandemic erupted, delivering a significant blow to both the automotive market and the world economy. However, the financing momentum in China's intelligent and connected vehicle sector did not come to a halt—it continued to thrive, attracting substantial investments from renowned multinational corporations such as Toyota, Bosch, and SoftBank. Despite the broader industry downturn, the smart and connected car market remains highly regarded.
1. Over 70% of companies secured financing exceeding 100 million yuan, with Didi leading at $500 million.
According to incomplete statistics from the China Automotive Industry Information Network, a total of 12 companies in the intelligent and connected vehicle sector secured financing in the first half of the year, with over 70% of these companies receiving funding exceeding 100 million yuan. Among them, Didi and Pony.ai led the pack, collectively raising a remarkable $500 million in capital. Such substantial funding reflects the confidence of the capital market in the growth prospects of the intelligent and connected car market. In an increasingly competitive automotive landscape, automakers are now leveraging cutting-edge intelligent and connected technologies as a key strategy to enhance their product competitiveness. As per data from the China Automotive Industry Information Network, nearly 50 L2-level and higher vehicles were launched in the first half of 2020, nearing the full-year volume of 2019—a clear sign of robust growth momentum. Meanwhile, companies like GAC and Changan have also successively unveiled L3-level autonomous driving systems, while numerous automakers are eager to seize the lead in mass-producing 5G-enabled vehicles, demonstrating their strong commitment to advancing smart and connected technologies. Therefore, precisely during periods of market downturn, emerging technologies tend to gain even greater favor among businesses, signaling a promising future for intelligent and connected vehicle innovations.

First-Half Financing Summary

2. Domestic leading enterprises are highly regarded by multinational corporations, reflecting the strength of startup companies and signaling an intent toward localization.
In the aforementioned financing round, there was a clear trend of multinational corporations participating, with four financially robust global giants—Toyota, Denso, SoftBank, and Bosch—investing substantial amounts totaling up to $500 million. On one hand, this reflects these companies' recognition of the domestic firms' technological prowess; on the other hand, it also underscores their growing intent to localize operations in China. Notably, Toyota and Bosch already hold significant market shares in both the Chinese automotive market and the autonomous driving sector. As such, the degree of localization in intelligent connected technologies will directly influence their future growth strategies within China's auto industry. For instance, Toyota, after establishing a strategic partnership with Pony.ai—the leading domestic player in autonomous driving technology—has now further strengthened its collaboration through direct investment, driven primarily by its confidence in Pony.ai's cutting-edge technological capabilities.

3. With multiple breakthroughs, the invested companies cover a diverse range of technology areas, including advanced autonomous driving, driver assistance systems, and vehicle-to-everything (V2X) connectivity, among others.
Although high-level autonomous driving technology companies are favored by multinational capital, a closer look at financing activities in the first half of the year reveals that companies investing in rapidly emerging technologies—such as driver-assistance systems, vehicle-to-everything (V2X) connectivity, and AI-powered voice solutions—are equally attracting significant interest. These include innovative players like MagicVision Intelligence and Zhongmu Technology, both leaders in driver-assistance technologies, as well as Conversational AI platform company iFLYTEK. For instance, MagicVision Intelligence specializes in intelligent driver-assistance systems, offering cutting-edge features like automatic parking, valet parking, AEB (Automatic Emergency Braking), and TJP (Traffic Jam Pilot)—all highly sought-after applications in today’s automotive market—and has already secured front-loading integrations with automakers. Meanwhile, iFLYTEK has raised over 400 million yuan in funding, with its core business centered on human-machine interaction technologies.
In summary, the domestic market for intelligent connected vehicles is clearly trending positively.
(This article is from Gasgoo.com)

Translated from Sina Auto

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