Baidu to Invest in the Development of Self Driven Cars in the Next Three Years
Baidu Inc. the online search giant will be creating a new business unit that will spearhead its automobile efforts and is planning to place self driving cars in the roads in the next three years. The Beijing based company had successfully completed its test drive of the self driven car on various roads last week and is intending to mass produce the vehicles in five years. Baidu said that the new business unit will only focus in the research and development of self driven technology and build an industrial chain that will support the production of these next generation cars.
Senior vice president for Baidu Wang Jin, will be responsible in managing the new business unit also stated that the value of a traditional vehicle depends largely on its mechanics, but in the future it could be the smart system that will reflect the actual value of the car based on the long term. In the futures most of the vehicles will be self driven or controlled by smart systems, and Baidu is setting a target in commercializing their operations in the next three years in addition to the ten years in which 80 percent of produced vehicles will be equipped with self driving technologies. Baidu is not the only company that is betting in the future of self driving technology and internet enabled vehicles. Other tech giants such as Google and Samsung Electronics Co. are making their presence felt in the industry with autonomous driving technologies. Baidu’s Internet rival Alibaba Group Holdings and Leshi Internet Information and Technology Co. are already moving into the car related business by teaming up with several automobile makers.
An analyst from Analysys International a Beijing based Internet consultancy stated that instead of making a fortune by selling smart cars, companies are opting and betting on tapping into the various in car demands of the people. Baidu itself invested in the development artificial intelligence and its business range from online search to Internet enabled cars. these cars have Baidu maps that provide navigation services and online to offline services matches people’s search requests from dining out or the nearest mall.
Baidu said that the market for self-driven cars is valued in the millions of yuan in China, but the car related business including safety driving and car energy saving cars is worth trillions. Baidu will be joint forces with BMW AG to launch its self driven cars,