Bosch invests in China's WeRide

The size of the deal was not disclosed. They will work on autonomous driving software that targets mass production for level two to level three (L2-L3) autonomy. L2 is partial driving automation also known as advanced driver assistance systems (ADAS), while L3 is described as conditional driving automation. Both levels require human intervention.

L4 represents a significant step up. The car is fully autonomous in certain environments but still needs a driver in the seat. In the event of an accident, the vehicle manufacturer is responsible.

With regulatory oversight still prudent and the path to commercialisation of robo-taxi services unclear in China, autonomous driving start-ups are leveraging their accumulated technology and data to make money by serving lower-level needs.

WeRide One, the universal software that underpins the company's services, can enable L2-L4 autonomy. Its collaboration with Bosch - which has developed an intelligent driving system solution tailored for the Chinese market - will focus on L2-L3 software for domestic original equipment manufacturers (OEMs).

“With the increased adoption of intelligent driving technologies in new vehicles, advanced driving solutions are shaping up to be the next blue ocean for the industry," said Li Yin, president of Bosch's cross-domain computing solutions business in China.

"The cooperation between the two parties is set to accelerate the volume production of advanced intelligent driving solutions, and deliver a safer, more comfortable, and smarter driving experience in China."

WeRide closed two funding rounds in 2021, a USD 310m Series B round led by Chinese electric bus manufacturer Yutong Group and a Series C of undisclosed size featuring numerous private equity investors. One tranche of a Series D - USD 400m was raised at a valuation of USD 4.4bn - closed in March, according to AVCJ Research. The Carlyle Group and China-Arab Investment Funds were among the participants.

The company claims to be the first Chinese autonomous driving player to receive strategic backing from top-tier global automakers, namely Alliance Ventures - an investment unit established by Nissan Motor, Mitsubishi Motors, and Renault - and Yutong.

Established in 2017, WeRide is headquartered in Guangzhou. Its autonomous technology has been verified with over 11m kilometres of test driving on open roads. WeRide’s L4 fleets comprise robotaxis, mini robobuses, robovans, and robo street sweepers.

Last year, Bosch co-led a USD 500m round for Momenta, another Chinese autonomous driving start-up. The company is pursuing a two-pronged strategy whereby it provides L2 solutions while developing L4 technology.

“We walk on two legs,” Hardy Zhang, Momenta's CFO, told AVCJ in a previous interview. "The L2 and L4 solutions share data and a technology framework: mass-production data can be fed into the L4 algorithm; the L4 solution strengthens the security and reliability of L2 scenarios."

Bosch also led a USD 173m Series C for Chinese LiDAR developer Hesai in early 2020.

Momenta and Hesai are distinct from WeRide in that they focus on driving services or algorithms as opposed to operating their own fleets. In this sense, WeRide's key domestic competitor is Pony.ai, which achieved a valuation of USD 8.5bn on closing the first tranche of a Series D round in March. 

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• Topics
• Greater China
• Expansion
• Technology
• China
• autonomous driving
• automobiles
• Growth capital