Elon Musk Tesla is likely to have more competition in the Electric Vehicle market. This is because Chinese search engine giant Baidu has announced a collaboration with carmaker Geely to manufacture smart electric vehicles. Geely is not only one of the largest carmakers in China but also has stakes in Mercedes-Benz owner Daimler and owns Volvo. The joint venture of both the companies is likely to give some tough competition to Tesla as well as several Chinese EV manufacturers. Robin Li, the chief executive and co-founder of Baidu, said that the partnership will pave the way for future passenger vehicles.
“Baidu has expertise in autonomous driving and connected vehicles. Geely is an experienced automobile manufacturer. The partnership between both the companies will result in the future mode of transportation,” Li said. It must be noted that China is already a leading market in terms of electric vehicles. A report of the International Energy Agency suggests that 47 per cent of all the electric cars on the roads are only in China. China is increasingly shifting its focus towards electric vehicles. Estimates of data provider S&P Platts suggest the new energy vehicles will account for 20 per cent of total new car sales in China by 2025.
Li said that the next generation is demanding for EV vehicles and it is expected to manifolds in coming years. But it is not going to be a cakewalk for Baidu and Geely as they will face some very tough competition. There are many competitors both in China and globally who are working to develop smart electric vehicles. Sources suggest that the two companies are likely to seal the deal in March this year. People privy with the development said that the production of EV vehicles is likely to begin in 2024. The announcement by Baidu and Geely comes close on the heels of a report that Apple and Hyundai are reportedly working to develop an electric car.