(Yicai) Sept. 23 -- State-owned automaker China FAW Group is set to become the largest shareholder of Zhuoyu Technology, an advanced driver assistance system developer spun off from drone maker DJI Technology, as part of its broader push into intelligent driving.

FAW, based in Changchun, will purchase a 35.8 percent stake in Zhuoyu from Hong Kong-based New Territory Technology, according to a filing published by the State Administration for Market Regulation yesterday. The move makes FAW the largest single shareholder of the ADAS firm.

Zhuoyu will continue to operate independently after the deal closes, a source at the company told Yicai.

Founded in 2016, Zhuoyu was formerly DJI’s in-vehicle systems division and became an independent firm in 2023. New Territory, established in 2022, derives most of its business from Zhuoyu, though its relationship with DJI remains unclear.

Once considered one of China’s four leading domestic ADAS players alongside Huawei Technologies, Momenta, and Horizon Robotics, Zhuoyu has reportedly lost ground since last year in terms of market visibility and large-scale application.

Industry insiders said the partnership is expected to help FAW speed up the development of intelligent driving systems. Meanwhile, Zhuoyu stands to benefit from FAW’s financial backing and industrial resources, boosting its expansion and innovation capabilities.

Zhuoyu has existing partnerships with major automakers, including Volkswagen, SAIC-GM-Wuling Automobile, Chery Automobile, Dongfeng Motor Corporation, and Great Wall Motor, according to its website.

Editor: Emmi Laine