Singapore Investment Corp (GIC), the city-state's sovereign wealth management vehicle, has acquired an 18% stake in Shanghai-based Advanced Leading Technology Group (ALT), a Chinese auto electromechanical system design and integration firm.
Financial details were not disclosed.
Established in 2000, ALT designs and manufactures software, firmware and key components including motors, sensors and electronic control units.
"We are confident that this investment will help us to capture rising demand of ADAS (Advanced Driver Assistance Systems) and EV (electric vehicle) in the China market," said Jack Chen, founder and chairman of ALT, in a statement.
ALT focuses on Electrical Power Steering (EPS) and Adaptive Front-lighting System (AFS), both are related solutions for Advanced Driver Assistance Systems (ADAS), which helps the driver in the driving process including functions such as hands-off cruising and self-parking.
ADAS is one of the fastest-growing segments in automotive electronics today, with steadily increasing rates of adoption among major car makers. ALT says that it has penetrated top Chinese auto brands, including Baidu intelligent drive.
"Looking ahead for ALT, we are committed to growing the AFS and EPS business," said Chen. "We'll continue to expand capacity to address the growing EPS and AFS market, increase market share and strengthen our services. We believe these efforts will position ALT as the leading EPS and AFS system provider in the China automotive market."
With this new investment from GIC, ALT plans to expand EPS capacity to meet current demand and increase shares in EPS and AFS markets, capitalizing on the ADAS trend of intelligent driving and EV demand in China.