Chinese search firm Baidu to create an electric vehicle company as tech giants jump into auto space

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Baidu will create a standalone electric vehicle company with Chinese automaker Geely as a minority shareholder. Geely will be responsible for manufacturing.

Chinese search giant Baidu will create a standalone electric vehicle company, a person familiar with the matter told CNBC.

The Beijing-headquartered company will be the majority shareholder while Chinese automaker Geely will take a minority stake, the person said. Geely will be responsible for manufacturing the vehicles while Baidu will focus on the software behind the car.Wan Xiaojun | Visual China Group via Getty Imageswill create a standalone electric vehicle company, a person familiar with the matter told CNBC.will take a minority stake, the person said. Geely will be responsible for manufacturing the vehicles while Baidu will focus on the software behind the car.

Baidu relies heavily on advertising revenue but it has been looking to diversify its business to other areas such as cloud computing and autonomous driving software,The company has already been testing its driverless car software, named Apollo, in public robotaxi trials in Beijing. Baidu also has its own map app and voice assistant technology called DuerOS, which can be equipped inside a vehicle.in the form of subsidies and charging infrastructure.

Sales of pure electric vehicles from January through November rose 4.4% from a year ago, versus a decline of 7.6% in overall passenger car sales during the same time, according to China's Ministry of Industry and Information Technology.

 

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