On Monday, Nasdaq-listed ECARX announced a full acquisition of Flyme’s software business from Xingji Meizu for RMB 1.8 billion ($266 million).
The deal is structured through Hubei Qiguang Technology, a newly established entity spun off from Xingji Meizu, and includes the Flyme Auto smart cockpit operating system, the cross-device Flyme OS, related intellectual property, R&D teams, and existing automaker contracts.
The RMB 1.8 billion price tag is far from cheap. According to the company, Flyme Auto has been deployed in more than two million vehicles.
While the business has reportedly achieved profitability, the broader market trend is moving toward in-house software development by automakers, limiting the long-term bargaining power of third-party cockpit system providers.
ECARX CEO Shen Ziyu described the acquisition as a key piece of the company’s AI Agent strategy. However, Flyme remains heavily reliant on Geely-affiliated brands, and its customer concentration remains notably high.
