BYD bets on DJI’s drone expertise for smarter EVs

Chinese electric vehicle (EV) giant BYD is doubling down on its intelligent driving ambitions by investing in Zhuoyu Technology, a spinoff of drone powerhouse DJI. This strategic move underscores DJI’s expanding influence beyond drones, with its cutting-edge technology now making waves in the automotive industry.

As part of the deal, BYD has acquired a 3.95% stake in Zhuoyu, a Shenzhen-based company specializing in visual intelligent driving solutions. With the infusion of capital, Zhuoyu’s registered capital has risen to approximately 73.1 million yuan ($10.1 million). While the exact investment sum remains undisclosed, the collaboration is poised to reshape the competitive landscape of advanced driver assistance systems (ADAS).

DJI’s drone expertise finds new roads

DJI, best known globally for its drones, has been quietly leveraging its technology for automotive applications. Zhuoyu Technology, initially DJI’s automotive division, officially became independent in 2023. It now provides visual-based autonomous driving solutions to major automakers, including Volkswagen, SAIC-GM-Wuling, and Chery Automobile.

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This partnership with BYD builds on DJI’s vision of extending its technological prowess beyond aerial imaging into ground-based applications. Zhuoyu’s pure-visual solutions — a key offering — mirror DJI’s ability to harness high-definition cameras and sensors for unparalleled accuracy and efficiency.

For BYD, this investment represents a bid to stay ahead in the intelligence race, competing with rivals like Tesla and Huawei. BYD Chairman Wang Chuanfu emphasized during the 2024 BYD Dream Day conference that integrating full-stack intelligent driving systems is a cornerstone of the company’s strategy. With over 4,000 engineers dedicated to intelligent driving, BYD is aiming to democratize advanced driver assistance features across its vehicle lineup, including entry-level models priced under $15,000.

One of the most compelling aspects of this collaboration is BYD’s ambition to bring intelligent driving features to budget-friendly cars. Currently, the industry faces significant challenges in reducing costs for advanced technologies like L2 autonomous driving and Navigation on Autopilot (NOA) systems. For models priced below $15,000, experts estimate that the cost of components like AI chips and LiDAR must be contained under $3,000 — a tall order given current supply chain pricing.

Yet, BYD is uniquely positioned to overcome these hurdles. Its ability to scale production and rely on self-developed technologies allows it to achieve cost efficiency while maintaining performance. The recent release of the Baojun Yueye Plus, equipped with Zhuoyu’s Lingmou Intelligent Driving 2.0 Max system, highlights this achievement. Priced at just over $14,000, the model underscores the potential of the BYD-DJI collaboration to redefine affordability in the intelligent vehicle market.

BYD and DJI: A symbiotic relationship

For DJI, this partnership is an opportunity to establish itself as a leader in visual-based driving solutions. Zhuoyu’s focus on vision-only systems aligns with DJI’s expertise in high-precision imaging, a hallmark of its drone technology. This synergy not only accelerates BYD’s roadmap for intelligent driving but also reinforces DJI’s diversification strategy.

DJI’s involvement in the automotive sector reflects a broader trend among tech companies expanding into mobility solutions. The company’s advanced sensor technologies, originally developed for drones, are now driving innovation in ADAS, offering automakers an edge in terms of both capability and cost.

For BYD, Zhuoyu’s pure-visual solutions provide an alternative to LiDAR-heavy systems, which remain expensive. Vision-only systems can significantly reduce costs without sacrificing functionality, making them an attractive option for mass-market vehicles.

For US readers familiar with DJI’s drone dominance, this partnership is a reminder of how cross-industry innovation can disrupt established norms. Just as DJI revolutionized aerial photography, its automotive spinoff is poised to transform the way vehicles perceive and interact with their surroundings.

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