(Yicai Global) June. 25 -- New-energy vehicle startup Xpeng Motors has entered a partnership Desay SV Auto to develop an automated driving system.

Guangzhou-based Xpeng aims to develop a level-three autonomous system, meaning cars drive themselves with the assistance of driver monitoring, Tencent News reported, adding that the firm aims to start mass production of cars using the system by 2020.

"Desay SV's driving system is equipped with the world's top AI chips," Xpeng Chairman He Xiaopeng said. "We are very confident of meeting the 2020 production target and can take a big step toward smart car innovation."

Founded in 1986 in Huizhou, Desay SV provides electronics for cars as well as other services. The supplier has set up research and development branches and subsidiaries in Nanjing, Chengdu, Singapore, Europe and Japan, and maintains long-term relationships with many leading international automakers.

Established in 2014, Xpeng Motors released its first model, the G3 new energy sports utility vehicle, last October. The firm officially started taking orders this April with delivery expected in the second half of this year.

Editor: William Clegg