What’s new: China’s internet search giant Baidu Inc. and automaker Zhejiang Geely Holding Group are pouring more money into their smart car development partnership.
Jidu Auto, a smart electric vehicle joint venture between Baidu and Geely, completed a $400 million funding round backed by the two shareholders, the company said Wednesday. The breakdown of the new investment was not disclosed.
The money will fund research and development and mass production, Jidu said.
Jidu aims to unveil its first concept model equipped with a level 4 autonomous driving system in April during the Beijing International Auto Show. Cars with level 4 systems are capable of driving themselves. Mass production is expected in 2023, the company said.
The background: The capital injection comes 10 months after Jidu was launched in March 2021 with $300 million of initial investment. Baidu has majority ownership of Jidu with 55% while Geely holds 45%.
The founding of Jidu reflected a milestone in Baidu’s efforts to monetize its self-driving car systems as the search giant focuses more on autonomous driving, cloud services and artificial intelligence-powered products to diversify its revenue sources.
Jidu aims to spend 50 billion yuan ($7.7 billion) on developing smart-car technology over five years, Reuters reported in April 2021, citing Chief Executive Officer Xia Yiping.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
Get our weekly free Must-Read newsletter.
