On September 24, 2024, the China Securities Regulatory Commission issued the Opinions on Deepening Market Reforms for Mergers and Acquisitions of Listed Companies (referred to as the “Six M&A Measures”), igniting enthusiasm for M&A activities in the capital market. This surge in interest is particularly evident in the tech innovation sector, which has become a focal point of this wave of consolidation.
In recent years, the autonomous driving industry has seen rapid global development, positioning itself as a strategic high ground for automotive transformation and the evolution of transportation systems. However, this rapid expansion has brought intense market competition. Success now hinges on a company’s ability to innovate, capture market share, and integrate resources effectively. The industry is undergoing profound changes, characterized by accelerated technological advancements, shorter product iteration cycles, and increased market concentration.
In this competitive landscape, mergers and acquisitions (M&A) have emerged as a critical strategy for optimizing resources and enhancing competitiveness. This year has witnessed numerous M&A activities in the autonomous driving sector, both domestically and internationally.
Youon Acquires Shanghai AllyNav to Enter the Agricultural Autonomous Driving Sector
On November 25, Youon, a leading bike-sharing company, announced plans to acquire a 65% stake in Shanghai AllyNav Technology Co., Ltd. through a combination of stock issuance and cash payment. Shanghai AllyNav specializes in agricultural autonomous driving systems, offering integrated software and hardware solutions.
AllyNav had previously filed for an IPO on China’s STAR Market in June 2023 but withdrew its application in July, ending its IPO journey.
Hexagon Acquires Indurad
On November 22, Hexagon announced its acquisition of Indurad, a global leader in radar and real-time location systems, along with its autonomous transportation subsidiary, Xtonomy.
Based in Germany, Indurad develops modular radar systems for precise object tracking, collision avoidance, and automation. This acquisition will bolster Hexagon’s smart mining solutions and strengthen its industry leadership. The deal, valued at €19 million, will be completed by the end of November, with Indurad integrating into Hexagon’s Autonomous Systems Solutions unit.
TitanInvo Technology Completes Acquisition of Joospeed Electronic
In mid-November, TitanInvo Technology announced its full-stock acquisition of Jiaxing Joospeed Electronic Technology Co., Ltd. The deal significantly enhances TitanInvo’s multi-dimensional intelligent sensing capabilities, raising its valuation to RMB 8 billion.
Founded in 2006, Joospeed Electronic is a pioneer in microwave radar technology in China and the first to mass-produce 77GHz automotive millimeter-wave radars using domestic chips.
Stanley Robotics Acquired by HL Robotics
In early October, HL Robotics, a subsidiary of South Korea’s HL Group, announced the acquisition of a 74.1% stake in Stanley Robotics for KRW 32.2 billion ($24 million).
Stanley Robotics, the first company to commercialize outdoor autonomous parking robots, has operated its valet parking robot service at Lyon-Saint Exupéry Airport in France since 2018. In September 2023, it secured a contract with Canadian National Railway for its parking robot services.
AUTOAI Acquires DiDi Intelligence
On August 28, NavInfo announced a RMB 100 million investment in its subsidiary AutoAI, with DiDi Global contributing an additional RMB 670 million.
The transaction brings DiDi’s smart transportation division, including a 300-member team, into AutoAI to focus on smart cockpit technologies. AutoAI is reportedly exploring an independent IPO, depending on market conditions.
Luminar Acquires G&H’s Laser Module Division
In August, U.S.-based lidar company Luminar acquired the photonics and laser module business of Gooch & Housego (G&H) to expand its semiconductor operations. This acquisition follows Luminar’s previous purchases of Freedom Photonics, Black Forest Engineering, and Optogration, which laid the foundation for its semiconductor division, Luminar Semi.
Cepton Acquired by Koito
On July 29, lidar company Cepton announced its acquisition by Japanese Tier 1 automotive supplier Koito Manufacturing. The deal, priced at $3.17 per share, involves Koito acquiring all outstanding shares of Cepton.
Koito, founded in 1915, is a global leader in automotive lighting, with clients including Mercedes-Benz, BMW, GM, and Toyota. Koito has invested $200 million in Cepton to date.
Orbbec to Acquire Remaining Stake in Oradar
On July 25, Orbbec announced plans to acquire the remaining 30% stake in its subsidiary, Oradar Technology Co., Ltd., for RMB 9.5 million. Once completed, Oradar will become a wholly-owned subsidiary of Orbbec, with no changes to consolidated financial statements.
Kiwibot Acquires Taipei-Based AUTO Mobility Solutions
In April, U.S.-based delivery robot company Kiwibot acquired AUTO Mobility Solutions, a Taipei-based chip manufacturer specializing in robotics and autonomous driving. Kiwibot’s CEO cited geopolitical tensions between China and the U.S. as a driving factor behind the acquisition, aimed at safeguarding core data security.
LG Acquires Bear Robotics
In March, LG Electronics invested $60 million in Bear Robotics, a Silicon Valley-based company specializing in AI-powered autonomous service robots. This strategic acquisition aims to enhance LG’s long-term growth and portfolio diversification.
Conclusion
For larger companies, M&A activities provide a fast track to entering new markets, acquiring critical technologies, or expanding product lines, driving strategic growth and industrial upgrades. Simultaneously, smaller and mid-sized companies in the autonomous driving value chain are leveraging acquisitions and mergers to address challenges in funding, scale, and market access.
The increasing frequency and intensity of M&A activities highlight the sector’s dynamic evolution. Whether for listed companies seeking to expand or industry players aiming for breakthroughs, M&A has become an essential pathway to achieving strategic objectives.
