Seoul South Korea’s top automaker Hyundai Motor and its subsidiary Kia said on Sunday they had signed an agreement with Chinese tech giant Baidu to develop technology for connected cars.
Under a memorandum of understanding signed last week in Beijing, the two South Korean automakers and Baidu will join hands in a number of areas, including connectivity and autonomous driving technology.
Hyundai and Kia will also utilize Baidu’s clever cloud computing technology to meet tightening data regulations in Beijing, Yonhap news agency reported.
They added that South Korean companies will also look for recent business models using artificial intelligence technologies with their Chinese counterpart.
“Through strategic cooperation with Baidu, we will strive to create a connected car ecosystem in the Chinese market,” Hyundai and Kia said in a press release.
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The agreement came amid a growing market for connected cars in China.
Annual sales of connected cars in China are expected to reach 17 million units this year, up sharply from 7.2 million units in 2019, Hyundai said, citing Chinese data.
Hyundai and Kia have been working closely with Baidu since 2014, including: on the development of voice recognition technology.
