The autonomous driving unit of Didi Global Inc has signed a deal with GAC Aion New Energy Automobile Co Ltd, a major Chinese NEV maker, setting up a joint venture to mass-produce unmanned vehicles for ride-hailing services.

This is the first time the large-scale production of autonomous new energy vehicles is being promoted in China through a joint venture between autonomous driving companies and vehicle enterprises, Didi said.

The move is part of a broader deal in Didi’s autonomous driving unit to deepen its partnership with Aion.

The first mass-produced model under the JV will be connected to Didi's ride-railing network in 2025, which is expected to promote the accelerated commercialization of Level 4 autonomous driving vehicles.

Level 4 means that vehicles can perform all driving tasks under specific circumstances, but human overrides are still an option.

Zhang Bo, chief technology officer of Didi, said autonomous driving has always been a key sector of the company's strategy, and the new JV means that the development of Didi autonomous driving has entered a new stage.