Chinese autonomous driving tech firm DeepRoute.ai has secured $100 million in new funding from a major automaker, an investment aimed at advancing the large-scale adoption of its intelligent driving systems across China’s auto market. The company, headquartered in Shenzhen, has ambitious growth targets, with plans to deploy its advanced driver-assistance systems (ADAS) on roughly 200,000 vehicles by the end of 2025, up significantly from the 20,000 units currently on the road. CEO Maxwell Zhou shared these targets in an interview, emphasizing that DeepRoute.ai’s technology is designed to manage complex urban driving scenarios, a capability similar to Tesla’s Full Self-Driving (FSD) system, which the American company also hopes to launch in China soon.
DeepRoute.ai’s partnership with automakers includes a rollout plan for more than 10 new vehicle models outfitted with its ADAS technology by 2025. The initial model was released in August, and two additional models, one from the Smart brand co-owned by Geely and Mercedes-Benz, are expected to reach consumers later this year. With each vehicle sold, DeepRoute.ai collects a technology licensing fee, creating a steady revenue stream while simultaneously gathering critical driving data. This data will help the company continuously improve its artificial intelligence algorithms, enabling the system to better navigate complex and unpredictable traffic environments.
Although DeepRoute.ai’s latest round of funding was backed by a single, unnamed Chinese automaker, the startup’s previous investors include tech giant Alibaba, which has fueled DeepRoute’s technological advancements since its founding in 2019. The company did not reveal its valuation following the recent funding round, but Zhou underscored that DeepRoute’s business model and technology give it a competitive edge. Unlike many of its peers, DeepRoute.ai developed its autonomous driving system without relying on expensive high-definition maps, reducing overall costs. This approach could enable automakers to produce electric vehicles equipped with DeepRoute’s technology at a price as low as 150,000 yuan (around $21,000), potentially appealing to cost-conscious Chinese consumers in a highly competitive market.
China’s autonomous vehicle industry has become fiercely competitive, driven by the rapid evolution of vehicle technology and an ongoing price war between automakers. Many are seeking to differentiate their offerings by integrating advanced autonomous features, which have become a powerful selling point among Chinese buyers. Tesla’s announcement that it plans to introduce its FSD system in China has further accelerated the competition. Zhou noted that while Tesla is a trailblazer in autonomous tech, its systems will likely need adjustments to accommodate China’s unique traffic conditions, which are characterized by dense pedestrian areas and a high number of scooters engaged in last-mile deliveries.
Beyond its domestic expansion, DeepRoute.ai is eyeing international markets such as Europe, Southeast Asia, and the Middle East, expecting that the global demand for sophisticated autonomous driving technology could rise by 2027 or 2028. Zhou envisions a future where DeepRoute’s technology supports a wide range of smart vehicles around the world, with adaptations made for each region’s specific traffic norms and conditions.
Founded in 2019, DeepRoute.ai quickly distinguished itself in the autonomous driving sector by innovating with cost-effective technology. While many competitors were investing in costly high-definition mapping, DeepRoute.ai focused on developing a robust AI-driven ADAS solution that could function without such maps. This strategic decision has given it a pricing advantage, allowing automakers to incorporate advanced autonomous systems into more affordable electric vehicles.
China, home to the world’s largest automotive market, represents a huge opportunity for companies like DeepRoute.ai, as local consumers are increasingly receptive to new vehicle technologies. With regulatory support and substantial interest from both domestic and foreign investors, the country’s market for smart driving tech is poised for rapid growth. DeepRoute.ai’s partnership with major automakers aligns well with this momentum, enabling the company to leverage the scale of China’s car industry to refine its systems and gather the data necessary to improve AI accuracy.
In the face of this growth, regulatory and safety standards for autonomous driving are evolving, though China has not yet mandated any specific framework governing autonomous vehicles on a national level. For now, companies are developing their own protocols to meet both consumer expectations and internal safety benchmarks, especially as government-backed smart infrastructure projects are also underway to support the adoption of these technologies.
With the new funding and strategic alliances, DeepRoute.ai is well-positioned to play a leading role in China’s autonomous driving industry. As it works with automakers to bring its technology to market, the company aims to make advanced driving assistance more accessible to a broad range of consumers, both in China and eventually worldwide.
