(Yicai) Oct. 11 -- Chinese automotive giant GAC Group plans to invest USD25 million in Chinese autonomous driving startup Pony.ai.

GAC’s board of directors approved the investment in Pony.ai through its subsidiary GAC Capital, the Guangzhou-based carmaker announced yesterday. The move aims to accelerate the development of GAC’s self-driving business.

As autonomous driving could soon become a standard feature in vehicles, it is important that GAC obtains such technologies either by self-developing them or through external procurement, General Manager Feng Xingya said last month.

In August, GAC’s joint venture with Japan’s Toyota Motor partnered with Pony.ai and Toyota China to co-invest over CNY1 billion (USD137.8 million) to set up a JV to promote large-scale commercial applications of Level-4 autonomous driving. GAC Toyota Motor would be responsible for the vehicle production, while Toyota China and Pony.ai would provide self-driving technologies.

Pony.ai, which is also based in Guangzhou, is the world’s first autonomous driving technology developer to kick off operations in both China and the United States. In February, the company and Baidu’s Apollo Go became the first to receive the approval to test robotaxi services at Beijing Daxing International Airport and the highway to the airport.

In May, Pony.ai also became the first firm to be granted a permit to carry out truck fleet autonomous driving tests between two cities along the Beijing-Tianjin-Tanggu expressway and other road sections.

GAC had earlier invested in WeRide, another Chinese smart driving technology provider, to jointly build a robotaxi fleet that has already achieved commercialization. In June, GAC invested additional USD20 million in WeRide.

Both Pony.ai and WeRide are preparing to go public in the US.

Editors: Tang Shihua, Futura Costaglione