Chinese automobile manufacturer FAW is planning to acquire a 35.8% stake in local driving assistance technology firm Zhuoyu.
The proposed deal is open for public commentary until 1 October, reported Reuters citing a notice from the country’s market regulator.
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FAW intends to acquire the 35.8% interest from Hong Kong-based New Territory Technology Company, which currently has a 70.65% stake in Zhuoyu.
If the deal proceeds, New Territory’s stake in Zhuoyu would dilute to 34.85%.
The latest announcement follows reports of other strategic moves involving FAW.
Local reports in August indicated FAW Group was close to acquiring a 10% stake in battery electric vehicle (BEV) maker Zhejiang Leapmotor Technology Company.
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By GlobalDataThe reported deal is said to enable joint development of a new generation of smart new energy vehicles (NEVs) with shared R&D costs and increased economies of scale by developing supply chain synergies.
In March, German automaker Volkswagen and FAW unveiled plans to launch 11 new models for the Chinese market through their joint venture FAW-Volkswagen.
This includes ten new Volkswagen brand models—nine of which are reported to be NEVs —across various segments from 2026.
Separately, in December, Chinese electric vehicle manufacturer BYD invested in Zhuoyu to enhance its assisted driving technologies, technode reported.
The investment was described as part of BYD’s strategy to introduce assisted driving features in its vehicles by 2025, particularly for models priced at 200,000 yuan or below, and to support integration of advanced features such as a camera-enhanced rear-view mirror system to improve functions like lane changing.
