(Yicai) March 3 -- Chinese automotive giant Geely Holding Group will form a CNY4.8 billion (USD659 million) joint venture with its affiliates and autopilot startup Maichi Zhixing to accelerate the development of smart driving technologies.

The JV will be funded by Geely's auto parts subsidiary Jirun Automobile, Maichi, QL Partnership, Lotus Robotics, and an upcoming employee incentive platform, the Hangzhou-based owner of brands Geely Auto, Volvo Cars and Polestar announced yesterday.

Competition in China's intelligent driving sector is intensifying. Electric vehicle behemoth BYD announced on Feb. 10 that it would equip all its models with the autonomous driving system God's Eye, while Geely said last month that it is strengthening collaborations with Qianli Technology and AI startup Stepfun to add more artificial intelligence features.

The agreement shows that Jirun, Maichi, and QL will each hold 30 percent of the JV's equity, while Lotus and the shareholder platform consisting of JV employees will each hold 5 percent. Jirun will contribute intelligent driving-related assets valued at CNY1.3 billion (USD178.4 million) and CNY200 million (USD27.5 million) in cash. Maichi and Lotus will also inject technology assets.

The JV will integrate the strengths of all partners in intelligent driving technologies, research and development efforts, funding, and industrial resources to achieve greater synergies, improve R&D efficiency, and reduce costs while driving a leading industrial advantage, Geely noted. The firm will work closely with the JV to improve the intelligent driving system and product applications, enhance market competitiveness, and deliver a safer and more convenient mobility experience to users, it added.

QL and Lotus are both linked to Geely. The Chinese auto giant acquired a 51-percent stake in Lotus, a British luxury sports car brand, in 2017. QL is a limited partnership to be set up by a unit of Qianli and state-owned entities in Chongqing. Qianli, formerly known as motorcycle maker Lifan Technology Group, received investment from Geely during its restructuring in 2020.

Editor: Emmi Laine