Tongyu Automobile, a developer of intelligent driving systems, announced on August 21 the completion of round-A+ financing totaling nearly 200 million yuan ($29.2 million). The co-leading investors were Xiaomi Industrial Investment Management Co., Ltd., Shanghai Anting Industrial Development Co., Ltd., Jinbang Capital, Genesis Capital Group Limited, and Ruomu Capital, while SummitView Capital increased their investment.
Shu Qiang, the founder and chairman of Tonghao Automotive, said the funds will be mainly invested in R&D of core high-level technology of wire-controlled chassis, recruitment of outstanding talents, construction of a headquarters and R&D center, and strengthening its leading edge in the field of core components of wire-controlled chassis. The company will promote the innovation and upgrading of core products such as EHB (two-box), iEHB (one-box), EPB, ABS, ESC, and others, and increase their share, and provide independent and controllable domestic core components and high-quality services for major vehicle manufacturers.
Founded in 2016, Tongyu Automotive strives to grow as a leading supplier of intelligent driving systems in China. The company focuses on the research, development and industrialization of “next-generation wire-controlled chassis key technologies.” The product layouts are wire-controlled driving systems, wire-controlled steering systems, brake energy recovery systems and advanced driver assistance systems.
The company has realized market validation of intelligent braking system for passenger cars, commercial vehicles and unmanned vehicles on a large scale. In 2021, its sales exceeded 120 million yuan, making it the top independent brand in terms of market share within the field of wire-controlled braking systems.
According to data from Zuosi Auto Research Institute, in 2021, Tongyu Automotive was second only to Bosch in terms of market share in the passenger car wired control actuation market and ranked first among Chinese manufacturers.
Sun Changxu, Managing Partner of Xiaomi Industrial Investment Management Co., Ltd., said a huge development opportunity is brought to the local auto parts industry by the development of intelligent electric vehicles, and braking systems are the core component that determines the safety and quality of driving. Tongyu Automotive holds a complete series of intelligent braking products and is also the leading local enterprise in China in terms of the shipment volume of EHB linear control actuation system. Relying on Xiaomi Group’s strong technology, customer resources, brand influence and other strategic resources, Xiaomi Investment intends to provide continuous assistance to the development of Tongyu Automotive.