Didi's Self-Driving Vehicle Division Secures $149M Investment from State Investors

In 2020, Didi launched an autonomous vehicle subsidiary, positioning it as China's answer to Uber's AV division. However, the Chinese tech landscape has since transformed, marked by regulatory crackdowns and a decline in foreign investments due to increasing tensions between the U.S. and China. During a data security investigation into its parent company, Didi's AV unit operated largely under the radar. Now, the subsidiary has emerged stronger, boosted by new funding.

Reinforced by previous investments from SoftBank, Didi Autonomous Driving announced today that it will secure up to $149 million from two investors affiliated with the Guangzhou municipal government: GAC Group’s wholly owned subsidiary, GAC Capital, and the Guangzhou Development District Investment Group.

In China, building relationships with local governments is essential for getting robotaxis on the road. While not explicitly stated in their announcement, this new funding indicates a likely acceleration in Didi's robotaxi deployment in Guangzhou, a bustling megacity with a population of 18 million. In March, the company began commercial operations of its autonomous vehicles in the Huadu District of Guangzhou.

With these new funds, Didi plans to make significant investments in research and development, fast-track the rollout of related products, foster collaborative partnerships across the industry, and establish a sustainable ecosystem to drive the widespread adoption of autonomous driving technology.

In April, Didi announced its goal to launch self-developed robotaxis for public use around the clock by 2025. The company has formed partnerships with several OEMs to manufacture the necessary hardware, including Lincoln, BYD, Nissan, and Volvo. Didi's relationship with GAC deepened when it was revealed in May that a joint venture was formed with the carmaker's electric vehicle subsidiary, Aion, to mass-produce innovative robotaxis.