GUANGZHOU, China — Chinese language web big Baidu has shaped a strategic partnership with automaker Geely to create a standalone electrical automobile unit, the businesses confirmed on Monday.

The brand new unit will function as an unbiased subsidiary of Baidu, the corporate stated on Monday.

CNBC first reported the news on Friday, citing an individual conversant in the matter.

Beijing-headquartered Baidu would be the majority shareholder whereas Chinese language automaker Geely will take a minority stake, the individual advised CNBC. 

Hong Kong-listed shares of Geely had been up barely by 0.15% on Monday, after hovering practically 20% on Friday. Baidu’s U.S.-listed shares had been up over 15% on the shut of commerce on Friday.

Geely can be liable for the precise manufacturing of the automobiles. Baidu will give attention to the software program and know-how within the automobile. The search big has already been testing its driverless automobile software program, named Apollo, in public robotaxi trials in Beijing.

Baidu additionally has its personal map app and voice assistant know-how referred to as DuerOS, which could be geared up inside a automobile.

China’s electric vehicle market continues to grow, helped by government support comparable to subsidies and the constructing of charging infrastructure.

Home electrical automaker Nio, Li Auto and Xpeng Motors, all reported a surge in deliveries for December. Baidu is hoping to get in on a number of the electrical automobile motion.

“China has grow to be the world’s largest marketplace for EVs (electrical automobiles), and we’re seeing EV customers demanding subsequent era automobiles to be extra clever,” Robin Li, CEO of Baidu, stated in an announcement.

The electrical automobile market continues to grow to be extra aggressive with firms ramping up manufacturing and launch of latest automobiles.

On Saturday, Nio released its first sedan called the et7. Apple iPhone maker Foxconn signed a deal with Chinese electric carmaker Byton to help produce its first vehicle.