(Yicai) Jan. 25 -- Chinese carmakers BYD and FAW Group are reportedly in advanced talks to invest in the intelligent driving business of Chinese drone giant DJI Technology.

DJI Automotive has received the letter of investment intent from BYD and FAW, as the parties are moving forward with the financing process, Chinese tech media outlet 36Kr reported today, citing sources. 36Kr contacted the three companies for confirmation but received no response.

The quote for external investments in DJI Auto is about CNY10 billion (USD1.4 billion), 36Kr earlier reported. The amount could be lower in case the investor placed an order, it added.

DJI founded its intelligent driving team DJI Auto in 2019 and separated it in October 2022. DJI Auto, which is now operated by Shenzhen Zhuoyu Technology, is one of China's two main smart driving solutions providers, along with Huawei Technologies' Intelligent Automotive Solution Business Unit.

According to 36Kr's report today, BYD had contacted Huawei's Intelligent Automotive Solution BU before DJI Auto, but Huawei had declined the partnership proposal by the Chinese carmaker.

DJI Auto launched a new-generation intelligent driving platform called Chengxing last April. Chengxing does not rely on high-precision maps and light detection and ranging to navigate on autopilot in urban areas and has low costs.

Compact electric vehicle models, such as SAIC-GM-Wuling's Baojun Yunduo and Chery Automobile's iCar 03, are already using Chengxing.

DJI Auto demonstrated Chengxing's urban NOV function based on a Qualcomm Snapdragon Ride (SA8650P) chip at the International Consumer Electronics Show in Las Vegas earlier this month. Carmaking partners will soon equip their models with Chengxing on a large scale, DJI Auto said.

Editor: Futura Costaglione