Qianli Technology is expected to collaborate with Mercedes-Benz on R&D projects and provide technology support for the German automaker’s upcoming models in China.
On September 24, Bloomberg reported, citing people familiar with the matter, that Mercedes-Benz Group AG plans to acquire a minority stake in Chongqing Qianli Technology Co., a Shanghai-listed developer of autonomous driving systems. The deal could be announced as early as this week.
The following day, September 25, Qianli Technology’s controlling shareholder Lifan Holdings signed a Share Purchase Agreement with Mercedes-Benz (Shanghai) Digital Technology Co., a wholly owned subsidiary of Mercedes-Benz.
Under the agreement, Lifan Holdings will transfer 136 million shares (representing 3.00% of total equity) of Qianli Technology at RMB 9.87 per share ($1.39), for a total consideration of RMB 1.339 billion ($188 million). Proceeds will primarily be used to repay related debts. Mercedes-Benz has pledged not to reduce its stake within 12 months of the share transfer’s completion.
Upon completion, the German automaker will become the fifth-largest shareholder of Qianli Technology.
Qianli Technology, formerly known as Lifan Technology, focuses on its “AI + Auto” strategy, with two core business segments: intelligent assisted driving and smart cockpits. Zhejiang Geely Holding Group is among the company’s principal shareholders.
In March this year, Qianli Technology and Geely Auto Group jointly unveiled the Qianli Haohan intelligent driving system, releasing three versions—H3, H5, and H7—designed to cover multiple levels of autonomous driving capabilities.
The investment comes as German automakers broadly recalibrate their strategies in China. With domestic players such as BYD and Xiaomi rapidly gaining ground in electrification and smart technologies, and with demand for luxury EVs showing signs of slowing, German brands are increasingly turning to local partnerships to accelerate their technology development.
Following the equity acquisition, Qianli Technology is expected to support Mercedes-Benz’s China lineup in both R&D and mass production. In parallel, Geely and Mercedes-Benz are also in preliminary talks over potential collaborations in traditional internal combustion engine projects.
Notably, beyond its capital ties with Qianli Technology, Mercedes-Benz is also accelerating its intelligent driving portfolio. On the same day, the company announced that its co-developed L2-level urban and highway navigation assistance system with Momenta will soon be launched, first appearing on the upcoming all-electric CLA.
Buoyed by the investment news, Qianli Technology’s share price rose 5.11% yesterday. As of Wednesday, the company’s market capitalization stood at approximately RMB 59.5 billion ($8.35 billion).
Discover more from ChinaEVHome
Subscribe to get the latest posts sent to your email.
