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| Chinese research giant Baidu is making electric cars |
Chinese research giant Baidu plans to produce electric cars with the help of Geely, the largest private auto maker in China, according to the latest Reuters report.
The cooperation between Baidu and Geely marks the entry of the latest Chinese conglomerate into the emerging market of electric cars after shopping giant Alibaba and auto assembly giant Dede Chuxing.
The electric vehicle manufacturing also represents an extension of Baidu's ambitions to enter the transportation field. Baidu has been working on autonomous driving technology for several years and is the leading self-driving vehicle manufacturer in China.
Baidu could establish a new joint venture with Geely to advance the development of the electric vehicle industry. Baidu focuses on developing software for cars, while Geely focuses on hardware and transmitters.
After the huge success of Tesla, internet giants like Tencent, Alphabet, and Amazon have either developed auto-related technologies or invested in smart car startups.
Baidu and Geely are negotiating the use of Geely's scalable electric vehicle platform the company announced late last year. However, Baidu will hold a majority stake in the new company and thus control the direction of its development.
In order to defeat other world powers, the Chinese government has spent many years focusing its large companies on developing green technologies.
Noting that the gasoline-powered car ban has been in effect since 2017 and that this policy was implemented only late last year, Beijing announced a generous subsidy policy for clean cars, which has led to a staggering growth in electric vehicle launches.
XPeng is funded by Alibaba Startup, the nation's major tech companies have spent a lot of time figuring out how best to enter the market, and the company grabbed the headlines first by copying Tesla's design.
Tencent is backed by Weilai Automobile, one of the largest electric vehicle manufacturers in China.
Big tech companies in China have recently taken more realistic steps. Alibaba has set up a joint venture electric vehicle with SAIC Motor, the largest automaker in China.
Didi Chuxing is working with Chinese auto giant BYD to make electric cars.
Baidu's partnership with Geely is the latest example of this dedicated endeavor, and Geely itself has ambitions.
Geely owns the Volvo brand and has partnered with parent companies of Mercedes, Daimler and Matonian Broughton and has entered other areas such as drones, high-speed trains and satellite networks recently offered.