The Baidu Inc. emblem is displayed on the corporate’s headquarters on July 3, 2019 in Beijing, China.
Wan Xiaojun | Visible China Group by way of Getty Photos
GUANGZHOU, China — Chinese language web large Baidu has shaped a strategic partnership with automaker Geely to create a standalone electrical car unit, the businesses confirmed on Monday.
The brand new unit will function as an impartial subsidiary of Baidu, the corporate mentioned on Monday.
CNBC first reported the news on Friday, citing an individual acquainted with the matter.
Beijing-headquartered Baidu would be the majority shareholder whereas Chinese language automaker Geely will take a minority stake, the particular person advised CNBC.
Hong Kong-listed shares of Geely have been up barely by 0.45% on Monday, after hovering practically 20% on Friday. Baidu’s U.S.-listed shares have been up over 15% on the shut of commerce on Friday.
Geely might be chargeable for the precise manufacturing of the autos. Baidu will deal with the software program and know-how within the automobile. The search large has already been testing its driverless automobile software program, named Apollo, in public robotaxi trials in Beijing.
Baidu additionally has its personal map app and voice assistant know-how known as DuerOS, which might be geared up inside a car.
China’s electric vehicle market continues to grow, helped by government support corresponding to subsidies and the constructing of charging infrastructure.
“China has grow to be the world’s largest marketplace for EVs (electrical autos), and we’re seeing EV customers demanding subsequent technology autos to be extra clever,” Robin Li, CEO of Baidu, mentioned in a press release.
The electrical automobile market continues to grow to be extra aggressive with firms ramping up manufacturing and launch of latest autos.
On Saturday, Nio released its first sedan called the et7. Apple iPhone maker Foxconn signed a deal with Chinese electric carmaker Byton to help produce its first vehicle.