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 Pictures
GUANGZHOU, China — Chinese language search big Baidu will create a standalone electrical car firm, an individual conversant in the matter informed CNBC.
The Beijing-headquartered firm would be the majority shareholder whereas Chinese language automaker Geely will take a minority stake, the individual stated. Geely will probably be liable for manufacturing the autos whereas Baidu will give attention to the software program behind the automotive.
Baidu and Geely declined to remark when contacted by CNBC.
Hong Kong-listed shares of Geely had been up greater than 13% after Reuters first reported the information.
Baidu depends closely on promoting income however it has been trying to diversify its enterprise to different areas akin to cloud computing and autonomous driving software program, areas that analysts see as promising for the corporate.
The corporate has already been testing its driverless automotive software program, named Apollo, in public robotaxi trials in Beijing. Baidu additionally has its personal map app and voice assistant know-how referred to as DuerOS, which could be outfitted inside a car.
China’s electrical automotive market continues to develop, helped by authorities help within the type of subsidies and charging infrastructure.
Gross sales of pure electrical autos from January by means of November rose 4.4% from a yr in the past, versus a decline of seven.6% in total passenger automotive gross sales throughout the identical time, in response to China’s Ministry of Business and Info Expertise.
Baidu will probably be leaping into an more and more aggressive market competing with the likes of Tesla in addition to home electrical car corporations akin to Nio, Li Auto and Xpeng Motors.
The latter three corporations all just lately reported a surge in automotive deliveries for December.
China’s tech giants have all been investing in electrical autos or auto-related know-how. Alibaba is an investor in Zhiji, an electrical car enterprise created by Chinese language state-owned carmaker SAIC Motor.
In the meantime, ride-hailing agency Didi launched its personal electrical car with automaker BYD, which is backed by billionaire Warren Buffett.
Elsewhere, Hyundai Motor stated it was in early-stage discussions over a tie-up with Apple to make a automotive.