Baidu and Geely’s EV Plans
While Baidu may not be a traditional automotive manufacturing company, this will by no means be the company’s first venture into vehicles. In fact, Baidu has previously spent serious money and time on building artificial intelligence (AI) in order to launch their robo-taxi fleet. This newest project will focus much more on making an EV as opposed to the creation of autonomous vehicles.
It is predicted that Baidu and Geely will enter into a joint venture in order to achieve this goal. Baidu will be focusing mostly on the software aspect of creation, while Geely will handle the physical hardware portion. More importantly than this, it also appears that the companies will be using Geely’s scalable EV platform, which the company had announced last year, though Baidu will be controlling the direction of the platform given the larger stake they will have in the business venture.
This massive push for the development of electric vehicles in China has come as the Chinese government has made significant efforts to reduce carbon emissions in the nation. With the government planning to create a partial gas-powered vehicle ban starting in 2035, the pressure is on for Chinese companies to begin major developments in the EV market to meet the oncoming wave of demand that is coming.
This effort from Baidu and Geely will not be the only push for electric vehicles in the nation as many other companies in different fields have also been making significant moves in recent months. Alibaba became a major investor in XPeng, funding the startup’s effort to replicate Tesla’s electric vehicle designs. Tencent as well put significant funding behind an EV startup in Nio, the largest EV startup in China.
Baidu and Geely’s joint venture into developing and building electric vehicles is a major step for both China and the world, especially with the large-scale adoption of electric vehicles in the coming years. With environmental efforts continuing to scale up around the globe, adding two of China’s largest businesses to the mix will only result in further ease of access to the general consumer. This new partnership should surely lead to strong results in the very near future as both companies have great expertise involving their individual roles in this endeavor.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.