Electric cars have received a lot of attention in recent months, and even Tesla CEO Ilan Mask has been named the richest man in the world. Now, Chinese Internet search giant Baidu wants to enter the market and start producing electric cars with the help of the country’s largest private carmaker, Geely.
Many Chinese companies have invested in electric vehicles in recent years, and according to A new Reuters report, Baidu wants to launch a new company to produce smart electric vehicles that are manufactured in factories owned by Geely.
The production of electric vehicles shows Baidu’s ambition to enter the transportation market. This internet search giant has been working on car technology for a long time and is a leading company in the field of car vehicles.
Baidu is reportedly making a joint venture with Geely to produce electric vehicles and starting a new company. After launching the company, Baidu will work on software development, and Geely will focus on hardware. These companies are in talks to use the Geely platform, but Baidu will have a bigger stake in the new company and will determine its direction.
In recent years, the Chinese government has focused on the development of green technologies by its largest companies in order to address environmental problems. China has been banning gasoline-powered vehicles since 2017 and has provided subsidies for clean cars, which has led to a significant increase in electric vehicle startups.
China’s largest tech companies have been looking at the market to find the best way to enter. Alibaba, for example, invested in the startup XPeng. Tencent has sponsored one of the first electric car startups in China, Nio, which is now the largest startup.
Chinese companies have gone a long way in the recent past, with Alibaba co-investing with Syke, for example, and Didi Chuxing partnering with Bivaydi to build electric vehicles. Now Baidu wants to start working with Geely to take the electric car industry in China one step further.
Geely has big plans for the car industry. The Chinese company owns Volvo and also works with Mercedes-Benz Daimler. In addition to automobiles, the company is active in other fields, such as drones.