CHINA’S search engine giant Baidu Inc. said yesterday it will set up a company to partner with carmaker Zhejiang Geely Holding Group to make smart electric vehicles (EVs), the latest move by a tech company in the fast-evolving sector.

Baidu, which has been developing autonomous driving technology and Internet connectivity infrastructure, said the new EV company will count on Baidu’s intelligent driving capabilities and Geely’s car manufacturing expertise.

Geely will also be a strategic investor in the new company, which will be an independent subsidiary of Baidu, Baidu said.

Geely said in a separate statement yesterday the collaboration will be based on Geely’s EV-focused platform, Sustainable Experience Architecture (SEA).

Baidu’s move comes as many tech companies around the world are racing to develop smart cars, after Tesla Inc.’s success in commercializing EVs.

Apple is pushing to design an electric vehicle and batteries, aiming at a possible 2024 launch, sources said last month.

Alibaba has formed an EV joint venture with China’s biggest automaker SAIC Motor Corp., while Didi Chuxing is making EVs designed for ride hailing services with carmaker BYD.

Baidu established its autonomous driving unit Apollo in 2017. The unit mainly supplies technology powered by artificial intelligence and works with automakers such as Geely, Volkswagen AG, Toyota Motor Corp. and Ford Motor Co.

Baidu operates an autonomous taxi service Go Robotaxi with safety drivers on board in Beijing, Changsha and Cangzhou, and plans to expand to 30 cities in three years, which analysts say is a potential scenario for Baidu to eventually commercialize its automous driving technoglogies. It gained approval last week to test five cars in Beijing without safety drivers.

Baidu’s carmaking plan is likely to strengthen the concept of “software-defined vehicles,” said Jason Chen, transportation analyst at researcher Analysys.

“However, the success of Baidu’s carmaking will also depend on support from government policies, equipment cost reduction, and user demand.”

All automakers need to transform themselves into more tech-oriented companies as intelligent connectivity will play a much more important role, said Shi Ji, an analyst at Haitong International. (SD-Agencies)