Autonomous driving startup Holomatic announced on Monday that an exclusive round of financing generated hundreds of millions of yuan from GAC Group recently.

The investment will help integrate the two companies' strengths while accelerating the rapid progress of GAC's automated driving technology and industrialization. The deal will also help reduce overall mass production costs, the startup said.

According to the plan, a number of GAC's models equipped with Holomatic's autonomous driving system will hit the market this year.

Holomatic and GAC also signed an agreement in October 2021 to focus on the development of Level 2 plus driving functions and autonomous parking, which have achieved phased results. The two sides are now engaged in the in-depth research and development of Level 3 and higher automatic driving technologies.