Alliance Ventures backs China's WeRide
Alliance Ventures, an automotive-focused venture capital unit set up by Renault, Nissan Motor and Mitsubishi Motors, has invested in Chinese autonomous vehicle technology company WeRide.
Qiming Venture Partners also participated alongside Hanfor Capital, Atop Capital, Johnson Electric, Xiaopeng He, Idinvest Partners, and OceanIQ Capital. Financial terms were not disclosed.
The deal is touted as the first investment from a global automotive group in a Chinese start-up specializing in level-four autonomous driving technology. Systems in this segment are graded on a five-level scale, where level-four vehicles are designed to perform all safety-critical driving functions and monitor roadway conditions for an entire trip.
WeRide plans to use the capital to deploy a fleet of 500 autonomous vehicles in 2019. The company aims to accumulate 5 million kilometers of autonomous driving experience, and conduct operation and commercialization trials in Guangzhou and Anqing with various partners. It claims to have served more than 3,000 passengers to date.
"Autonomous systems are a key priority of the Alliance as we develop new mobility services,” François Dossa, vice president of ventures and open innovation at Alliance Global, said in a statement. Our member companies are committed to introducing such technologies in key markets such as China."
This is the first investment in China for Alliance, which was set up in January with a global mandate and bases across China, Japan, France, and the US. Alliance expects to deploy $200 million in its first year and an additional $800 million within five years. Nissan and Renault will each control a 40% stake in the program, while Mitsubishi will hold the remaining 20%.
Autonomous driving has become a popular investment segment in Asia on the back of various social and economic themes such as smart city development. However, the industry faces a number of significant challenges such as regulatory hurdles, safety concerns, and cultural barriers to adoption.
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