(Yicai) Dec. 4 -- Tongyu Automobile Technology, a Chinese supplier of intelligent chassis systems, has completed its over CNY500 million (USD70 million) Series B round of fundraising, gaining support from automakers such as BAIC Group and Dongfeng Motor.

State-backed Shenzhen Capital Group, GGV Capital, well as BAIC Capital under the Beijing-based owner of brands Arcfox and BAIC Foton, participated in the latest funding, the Shanghai-based startup announced today. Moreover, existing shareholders such as smartphone giant Xiaomi Corp. and automaker Dongfeng continued to pour money into the company.

For now, the firm has obtained investments from seven automakers, which should help Tongyu carry out closer collaboration with both upstream and downstream parts of the industry chain to speed up market exploration and to achieve the large-scale production of chassis control systems, said Shu Qiang, founder, chairman, and general manager. Some of the other automotive shareholders are JAC Motors and electric vehicle startup Xpeng.

The proceeds of this round of financing will be used to expand Tongyu's production capacity of smart brakes and to accelerate the research and development of new products. Moreover, it will construct an industrial park by its Shanghai headquarters, a project that should kick off in June. Almost half of the 60,000-square-meter park is reserved for smart manufacturing. Tongyu will also continue adding talents to develop more cutting-edge technologies.

Founded in 2016, Tongyu operates two plants in Shanghai and Jiangxi province's Yichun. The startup has supplied products to over 80 customers.

Editor: Emmi Laine