Chinese steering system supplier DECO nabs nearly 100 million yuan in Series B financing

Shanghai (Gasgoo)- DECO Automotive Co., Ltd. (“DECO”), a Chinese provider of intelligent driving steering systems, on Feb. 7 announced the completion of the B+ round financing, which raised for the company nearly 100 million yuan ($14.751 million).

The fresh round was led by Winreal Investment, with follow-up investments from Jinsha Capital, Qianhai Pengchen Investment, and iangel Venture Capital. The proceeds from this round will be used to enhance the company's production capacity of high-end intelligent steering products, upgrade its intelligent driving X-by-wire technology solutions, and attract high-end industry talents.

Photo credit: DECO

This marks another large financing for DECO in just a few months after completing a nearly 100 million yuan worth of Series B financing in Sept. 2022. The continued investment by existing shareholders Qianhai Pengchen and iangel Venture Capital reflects the market and shareholders' high recognition over DECO's R&D and mass production capabilities.

Founded in 2009, DECO focuses on the R&D, production, and sales of EPS system for various vehicles. Currently, DECO has achieved R&D of automotive-grade steer-by-wire (SBW) system and started the mass production of SBW products, which makes DECO a leading enterprise in domestic SBW technology for intelligent driving.

DECO has been engaged in the R&D of X-by-wire technology since 2011. It owns the redundant algorithm for L4 intelligent driving SBW system as well as the L2-L4 hardware platform. Its SBW products meet ASIL-D safety standards, assisting business partners to realize the commercialization and mass production of L2-L4 autonomous driving vehicles.

In terms of R&D, design, and production process of steering products, DECO holds over 100 unique and controllable core patents, said the company. Its product performance is comparable to that of international giant manufacturers with the cost considered as well.

DECO has its own software and hardware R&D team that boasts the ability to develop the entire industry chain of steering system controllers, brushless motors, sensors, and reducers, providing customized solutions for the steering products of automakers.

According to Gasgoo Auto Research Institute, the scale of China's chassis-by-wire market is anticipated to reach 60 billion yuan ($8.85 billion) in 2025, with a compound annual growth rate of 25.9%, among which the SBW sector would post a compound annual growth rate of 72.2%, far exceeding the industry average.