Major automakers have continued investing heavily in startups in 2024. They are mainly focusing on key areas such as autonomy and sustainability. Recent data reveals that automakers and their venture funds have participated in 52 funding rounds this year and it is collectively valued at about $2.8 billion. The pace is consistent with that of 2023. However, the nature of the investments reflects evolving industry priorities.

Autonomous driving remains a major focus. General Motors announced earlier this year to be investing $850 million in San Francisco-based self-driving tech firm Cruise. Similarly, Hyundai and Kia backed the AI mobility company 42dot with $183 million. However, the path is not smooth as the industry has been facing challenges and occasional setbacks in autonomous driving. The potential for mass adoption keeps the sector attractive to investors.

Sustainability in electric vehicles (EVs) is also gaining attraction. Startups like Lilac Solutions and Ineratec are developing liquid fuel from CO₂ and hydrogen. They have secured significant investments from automakers. BMW and Honda are the two prominent investors to name. The investments reflect growing emphasis on reducing the environmental impact of battery production and supply chains.

Meanwhile it is learned that automakers like Toyota, General Motors and BMW are leading the charge. Toyota has also been active lately as it participated in 10 startup financings and it includes an early-stage round for energy storage technology. General Motors and BMW have made notable investments. They are basically focusing on enhancing battery efficiency and cloud simulation technologies.

The investments are being made during a challenging period for the automotive industry that is lately marked by higher costs and complex transition to electric vehicles. However, the drive to stay competitive and embrace advanced technologies are keeping the auto companies engaged with the startup ecosystems.