Mercedes-Benz has acquired a 3% stake in Chongqing Qianli Technology for 1.34 billion yuan, solidifying their presence in the autonomous driving sector. Lifan Holdings transferred 135.6 million shares to Mercedes-Benz, making them the fifth largest stakeholder in Qianli. The deal ensures no changes in control and commitment to a 12-month shareholding.

Mercedes-Benz, Tesla, and Volvo are the first foreign carmakers approved to deploy AI chatbots in vehicles in China. The Cyberspace Administration of China registered the “Mercedes-Benz virtual assistant” as a generative AI service. Mercedes-Benz has been investing in China’s AI companies and strengthening strategic collaborations in the market.

Lifan Holdings, once a motorcycle manufacturer, broadened operations to include automobile components. Supported by Geely and the government of Chongqing, Lifan Holdings’ chairman Yin Qi co-founded Chinese AI firm Megvii. This acquisition highlights Mercedes-Benz’s efforts to deepen ties and strategic collaborations in China’s automotive industry.

Read more at Yahoo Finance: Mercedes-Benz acquires stake in Chinese autonomous driving developer for US$191 million