(Yicai) Aug. 28 -- Didi Global will invest CNY670 million (USD94 million) in NavInfo's intelligent driving unit, becoming its second-largest shareholder, as part of the Chinese ride-hailing giant’s broader shift away from direct involvement in car manufacturing while still developing its own smart driving technologies.

Didi will inject CNY220 million in cash into AutoAI and transfer over Ruilian Xingchen Beijing Technologies, a unit that is worth CNY450 million, Beijing-based NavInfo announced today. That will give Didi an almost 16.5 percent stake in AutoAI and reduce NavInfo’s to 27 percent.

The new funds will be used to enhance AutoAI's market competitiveness in the intelligent passenger car industry, according to digital maps provider NavInfo.

Didi also sent a team to join AutoAI, Cheng Peng, NavInfo director and general manager, told Yicai. The team has 300 people in the smart transportation field who will be mainly responsible for coming up with technologies such as intelligent cockpits, according to a source familiar with the matter.

The investment in AutoAI is further proof that Didi is abandoning the carmaking business. In August last year, the company sold its smart car business to Xpeng Motors for USD744 million in exchange for a 3.3 percent stake in the new energy vehicle startup.

But Beijing-based Didi has not completely stopped work on intelligent driving. Yicai learned that the investment in AutoAI will not affect Didi's Level-4 autonomous driving business, which continues to operate normally.

AutoAI had a CNY330 million net loss last year on revenue of CNY470 million. It has completed a total of 10 fundraisers, which were participated in by the likes of Robert Bosch Venture Capital, Tencent Holdings, and Nio Capital.

According to an insider, AutoAI has plans for an independent public listing in the future, depending on capital market circumstances. Its new order business is doing well, the person added.

Founded in 2002, NavInfo focuses on smart cockpits, intelligent navigation, the internet of vehicles, and intelligent network systems and solutions. It reported revenue of CNY1.6 billion (USD227 million) in the first half of the year, up over 11 percent from a year earlier. Its net loss widened 21 percent to CNY356 million.

NavInfo's shares [SHE: 002405] closed 0.4 percent down at CNY7.20 (USD1.01) each in Shenzhen today. The stock has fallen 19 percent since the end of last year.

Editor: Futura Costaglione