Volvo Cars and China’s Baidu has reached an agreement to jointly develop electric and fully autonomous capable cars with an aim of mass producing them for China.
As per the agreement, Baidu will contribute with its Apollo autonomous driving platform while Volvo will provide access to its expertise and advanced technologies of the car industry. Both companies will pool resources to take the next step and prepare for mass manufacturing of fully electric and autonomous cars.
China, which is already the largest car market in the world, is likely to become the single largest market for autonomous cars as well in coming decades, according to industry forecasts. Market research firm IHS Markit predicted earlier this year that around 14.5 million autonomous cars will be sold in China by 2040, on a total global volume of around 33 million.