The Chinese search giant Baidu to make electric cars with the help of China’s largest automaker – Geely. Geely is the leading company in the electric vehicle market following ride-hailing behemoth Didi Chuxing and Alibaba.
Baidu’s decision to make electric vehicles represent its purpose of branching into transportation. Moreover, it’s the leading autonomous vehicle space company and has been struggling with self-driving technology.
Baidu To Make Electric Cars
According to the Reuters reports, Baidu will incorporate with Geely on the new venture of making electric vehicles. Baidu will primarily focus on the development of software, whereas Geely will work on the hardware. Last year Baidu and Geely announced that they would use a scalable electric vehicle platform. However, Baidu has a high percentage of stakes in the new company and will take its path.
China has always invested in its most prominent companies to develop more eco-friendly technology to punch the world with its success. Beijing said that gas car was banned since 2017 (and the Chinese government released the policy last year). Now, the government has announced a genuine subsidy policy for vehicles which will boost the electric vehicles start-ups.
The big Chinese companies have spent years eyeing the best path to the market and simply bet about the release of EV’s. Firstly, the headlines made by Alibaba for funding XPen a start-up of an electric vehicle. Tencent funded Nio, it was the first electric vehicle start-up in China and now leading the market. But now these companies have taken a step forward. Alibaba has joined the electric vehicle venture with the biggest carmaker of China – SAIC. BYD and Didi Chuxing are working together to manufacture electric ride-hailing vehicles. Now, the partnership of Baidu with Geely is the latest example of a constant effort for making electric vehicles.
Geely is planning big to make a place in the market. Geely has already a partnership with Mercedes-Benz (parent company Daimler), and it also owns Volvo. Now, Geely is making its branch into every sector from passenger drones to the fastest rail speed and the latest satellite network.