Image Credit: Photo by Roberto Nickson on Unsplash
The autonomous driving scene in Europe is about to get shaken up. Deeproute.ai, an autonomous driving startup headquartered in Shenzhen, China, has plans to set up an operations center in Germany by 2024. The company, which has received over $350 million in funding and employs more than 500 employees worldwide, is the latest Chinese mobility upstart to establish a physical presence in Germany, home to some of the world’s largest automakers.
The move marks a significant step in the company’s global expansion strategy, which aims to collaborate with more local automakers and support OEM partners on smart driving mass production.
Unveiling The Plan
The announcement came during the International Motor Show Germany in Munich, where several Chinese mobility players marked their presence. The company has also revealed its plans to roll out its production-ready autonomous driving solution in Germany next year, with other European markets to follow.
Tech Behind The Wheel: Drive 3.0
The solution, dubbed Drive 3.0, works without HD maps and includes features like valet park assist. With a competitive hardware price of $2,000, the system is quite compelling. This affordability is largely thanks to Deeproute’s collaboration with its competitively priced Chinese lidar suppliers. Powering the system is Nvidia’s Drive Orin system-on-a-chip.
The Operations Center: A Mystery Unfolding
Details about the operations center remain sparse at this point. Deeproute has shared that it plans to hire a business development team in Germany, but the specifics about the operations center’s roles and responsibilities, as well as its geographical location, are yet to be disclosed.
Learning From History: Momenta’s Foresight
It’s worth noting that Deeproute is not the first Chinese autonomous driving company to establish a base in Germany. Suzhou-based competitor Momenta had the foresight to open an office in Stuttgart two years ago. This strategic move arguably paved the way for Momenta to foster closer relationships with its investor Mercedes-Benz, as well as other European OEMs.
Nio’s Footprint in Germany: A Case Study
Nio, another Chinese premium electric vehicle startup, already has a 1,500-sqm innovation center in Berlin and a design facility in Munich. In addition to these, it also runs a “Nio House,” a stylish members’ club and showroom in the German capital.
Deeproute’s Strategic Shift: From Robotaxi to Production-Ready Car
Like many ambitious Chinese AV startups, Deeproute initially focused on Level 4 driverless technologies to power robotaxis. However, over time, the company shifted its focus to less advanced driving solutions for auto partners, which could generate immediate cash flow. A representative from the company explained that they have been working with OEMs on mass production since last year, which prompted the shift in focus.
Deeproute’s Expanding Customer Base
As of the end of 2022, Deeproute’s services had provided over 800,000 passenger rides, most of which were executed by its robotaxis in major Chinese cities. With its impending expansion into Germany, the company hopes to grow its OEM customer base, which already includes Seres and Geely. A local business development team will be instrumental in connecting with more local automakers.
The Road Ahead: More Chinese Companies to Follow?
With Deeproute’s planned expansion, it’s possible that more Chinese robotaxi companies will consider venturing into Germany. If successful, Deeproute could potentially pave the way for other companies to follow suit, further solidifying China’s presence in the global autonomous driving landscape.
