MORE FROM KrASIA

CHINA BRIEF | State-owned automaker FAW Group invests in AI by establishing new subsidiary

The firm is eyeing AI and IoT sectors to seek new paths for growth.

Brief_Automotive Brief_Automotive

Chinese state-owned automaker FAW Group has launched a new subsidiary with a focus on artificial intelligence (AI) on April 9, according to enterprise data provider Tianyancha.

The newly established Nanjing-based firm, named FAW (Nanjing) Technology Development, was created with a registered capital of RMB 50 million (USD 7.1 million) and has AI software development, AI hardware sales, intelligent vehicle equipment manufacturing, big data services, and auto parts and accessories manufacturing within its business scope.

This is not the carmaker’s first attempt to tap the AI and the internet of things (IoT) sectors.

FAW Group has partnered with Alibaba in January to jointly build next-generation smart vehicles and promote the use of digital intelligence in the automotive industry, the South China Morning Post reported. In particular, FAW Group will use the technologies and resources of Banma Network, an Alibaba-backed intelligent in-car software solution provider, to develop smart solutions for its upcoming vehicles.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.