Middle East Bets on Autonomous Driving: What Opportunities Lie Ahead for Chinese Intelligent Driving Companies? | Overseas · Automotive (AI Translation)
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文｜财新 刘沛林 余聪
By Caixin's Liu Peilin and Yu Cong
【财新网】海湾石油国家处在能源转型关键期，希望引入新能源、智能驾驶等技术，中国智驾公司需要量产落地经验和市场，资本寒冬下中东资本亦是雪中送炭，中国智驾公司落地海湾国家成为新常态。
[Caixin Online] Gulf petroleum countries are at a critical juncture in their energy transition, seeking to introduce technologies such as new energy and smart driving. Chinese smart driving companies, in turn, require experience in mass production and market expansion. Amidst the capital winter, Middle Eastern capital provides timely support, and it has become a new normal for Chinese smart driving companies to establish themselves in Gulf nations.
10月27日，国内智能驾驶公司宏景智驾携新一代氢能重卡亮相沙特Tecshift峰会，该峰会由全球最大的石油公司沙特阿美旗下风险投资部门主办，是向外界展示其被投公司的平台。
On October 27, domestic smart driving company Hongjing Zhijia showcased its new generation of hydrogen-powered heavy trucks at the Saudi Tecshift Summit. The summit, hosted by the venture capital arm of Saudi Aramco, the world's largest oil company, serves as a platform to showcase its portfolio companies to the outside world.
本届峰会45家参展商广泛分布于AI、能源、工业软件等行业；三家中国公司参展，分别是搬运机器人公司快仓（Quicktron）、可信AI模型公司无限光年，以及宏景智驾，宏景智驾是45家被投企业中唯一一家智驾行业公司。
This year's summit featured 45 exhibitors spanning industries such as AI, energy, and industrial software. Three Chinese companies participated: logistics robotics firm Quicktron, trustworthy AI model company Lightyear, and autonomous driving company Horizon Robotics. Among the 45 funded companies, Horizon Robotics was the sole representative from the autonomous driving sector.
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- Gulf petroleum countries are transitioning to new energy technologies, supported by Chinese smart driving companies and Middle Eastern capital.
- - Chinese companies like Pony.ai, WeRide, and Horizon Robotics are investing in the Gulf region with strategic partnerships and funding for autonomous driving technologies.
- Saudi Arabia and UAE are prioritizing autonomous vehicle development through investment, partnerships, and infrastructure projects, with a focus on new mobility solutions and manufacturing capacity.
Gulf petroleum countries are at a critical juncture in their energy transition, focusing on new technologies like smart driving from Chinese companies. As the Middle East provides significant capital amidst a "capital winter," these regions have become lucrative expansion points for Chinese firms like Hongjing Zhijia, which showcased its hydrogen-powered trucks at Saudi Arabia's Tecshift Summit. Chinese tech companies like Horizon Robotics, Quicktron, and Lightyear were among the exhibitors at the summit, indicating a growing Chinese presence in the region [para. 1][para. 2].
Saudi Aramco’s venture capital arm, Prosperity7 Ventures, has heavily invested in Horizon Robotics, who also signed a strategic cooperation memorandum with Aramco. This collaboration includes deploying hydrogen-powered trucks within Aramco's logistics division, integrating smart transportation systems into Saudi Arabia's infrastructure, and potentially assembling vehicles locally [para. 3][para. 4].
The Chinese intelligent driving company Pony.ai received a significant $100 million investment from Saudi Arabia’s NEOM Investment Fund. The investment aims to establish a joint venture for developing autonomous taxis in the Middle East. Companies like WeRide are also venturing into Saudi Arabia, illustrating the Gulf's growing interest in autonomous technology from China. Moreover, UAE's partnership with Pony.ai and WeRide's initiatives in Abu Dhabi further underscore the region's push towards autonomous driving technology [para. 5][para. 6].
The China-UAE Joint Investment Fund has invested in companies like WeRide and Pony.ai, highlighting the strategic importance of these technologies in the region. WeRide’s innovative projects include the launch of the first autonomous taxi service in Abu Dhabi and road testing permitted under a nationwide license in the UAE [para. 7][para. 8][para. 9].
Middle Eastern nations are developing strategy plans to increase the adoption of autonomous driving by 2030, such as Saudi Arabia's “National Transport and Logistics Strategy.” These strategies aim to enhance the contribution of transport and logistics to their economies [para. 10][para. 11]. Various agreements with global tech firms, such as with the L4 autonomous vehicle firm Navya and Estonian company Clevon, highlight the proactive steps taken by Saudi Arabia [para. 12].
Saudi Arabia's TASARU Mobility, a venture under the Public Investment Fund (PIF), invests in global firms in the autonomous driving sector, aiming to expand Saudi Arabia's automotive production capacity. It collaborates with various tech firms globally, including Recogni Inc. and Croatian autonomous firm P3 [para. 13].
Investments are not solely financial; Gulf capital aims for long-term technological partnerships, often requiring invested companies to reinvest locally by building factories or R&D centers. China’s technological edge in smart driving makes it a favorable partner for these Gulf investments. Companies like Human Horizons have signed MoUs with Saudi Arabia's Ministry of Investment, reflecting the potential yet cautious market [para. 14][para. 15].
Local development initiatives like Dubai's plan for autonomous transport also reflect the Middle East's growing focus on smart transportation solutions. Dubai collaborates with international firms and local enterprises to promote the development of autonomous technologies [para. 16][para. 17].
Therefore, Chinese companies are poised advantageously to capitalize on Middle Eastern nations' strategic need for technological innovation, given their robust supply chain and adaptability to local markets. As a result, Gulf countries continue to channel investments into high-tech Chinese enterprises aiming to fulfill their energy transition and tech advancement goals [para. 18][para. 19].
- HongJing Drive
- HongJing Drive, a Chinese intelligent driving company, showcased its new hydrogen-powered heavy trucks at the Saudi Tecshift Summit. It's the only smart driving company among the 45 exhibitors. Saudi Aramco's venture arm Prosperity7 Ventures has invested in HongJing Drive, and both parties signed an MOU for deploying hydrogen-powered trucks. Plans include integrating smart transportation tech into Saudi's ecosystem, with local assembly and manufacturing of hydrogen-powered vehicles.
- Quicktron
- Quicktron is a Chinese company that specializes in developing handling robots. It participated in the Tecshift Summit in Saudi Arabia, which was hosted by Saudi Aramco's venture capital arm. Quicktron was one of three Chinese companies present at the summit, highlighting its involvement in a platform that showcases companies invested in by the Saudi firm.
- Infinite Light Year
- Infinite Light Year is a Chinese AI company that specializes in trusted AI models. It was one of the three Chinese companies participating in the Tecshift Summit in Saudi Arabia, showcasing developments in AI, energy, and industrial software.
- Pony.ai
- Pony.ai received a $100 million investment from Saudi Arabia's NEOM Investment Fund for its D2 funding round, with a pre-investment valuation of $8.5 billion. The company and NIF plan to form a joint venture in NEOM to develop and operate Robotaxi services in the Middle East. Additionally, Pony.ai has partnered with the Abu Dhabi Investment Authority to join a new autonomous driving hub, gaining self-driving test qualifications in the UAE.
- WeRide
- WeRide, a Chinese autonomous vehicle company, has entered the Saudi Arabian market by partnering with Saudi AI company (SCAI) in 2022 for a dynamic demonstration of autonomous minibuses. In December 2022, during the China-Arab Summit, WeRide's VP signed an MOU with Ajlan & Bros Holding Group's CEO to advance autonomous driving in Saudi Arabia. Additionally, WeRide has been active in the UAE, gaining a national driving license for autonomous vehicle testing.
- Human Horizons
- Human Horizons, the parent company of HiPhi, signed a $56 billion MoU with Saudi Arabia's Ministry of Investment to establish a joint venture for EV R&D, production, and sales. However, the investment has not materialized, and Human Horizons faced difficulties starting in early 2024.
- HiPhi
- HiPhi is an automobile brand under Chinese company Human Horizons, targeting markets above 300,000 yuan. In July 2023, Human Horizons signed a memorandum with Saudi Arabia's Ministry of Investment to establish a joint venture for electric vehicle R&D, production, and sales. Despite the attention, the Saudi investment did not materialize, and by early 2024, Human Horizons was facing significant challenges.
- NIO
- NIO, a Chinese electric vehicle company, received a total investment of $33 billion from Abu Dhabi's CYVN Holdings in July and December 2023. In October 2023, NIO announced a cooperation agreement with CYVN to establish a technology R&D center in Abu Dhabi, focusing on smart driving and AI technology. They also plan to co-develop a model for the local market, though it is unclear if they will establish production capacity locally.
- September 2022：
- WeRide partnered with the Saudi Company for Artificial Intelligence (SCAI) to establish the first dynamic demonstration route for autonomous microbuses in Saudi Arabia.
- December 2022：
- During the inaugural China-Arab States Summit and the China-Gulf Cooperation Council meeting, WeRide signed a memorandum of understanding with Ajlan & Bros Holding Group to advance autonomous driving implementation in Saudi Arabia.
- July 2023：
- WeRide obtained the first and currently the only nationwide license in the United Arab Emirates for autonomous road testing.
- October 2023：
- Pony.ai announced a partnership with the Abu Dhabi Investment Authority to join a newly established autonomous driving industry cluster and obtain qualifications for road testing in designated areas.
- October 2023：
- Saudi Arabia's NEOM announced the establishment of its strategic investment arm, the NEOM Investment Fund (NIF), and provided $100 million investment to Pony.ai for Series D2 funding round.
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