Connected Car Market in China Expected to Reach 41 Trillion This Year
Strengthening Collaboration to Build Ecosystem
Hyundai Motor Company and Kia are teaming up with Chinese big tech Baidu to target the Chinese connected car market.
On the 28th, Hyundai Motor Company and Kia announced that they signed a 'Strategic Cooperation MOU for the Chinese Connected Car' the previous day at the Yosemite Hotel in Beijing, China, attended by Song Chang-hyun, President and Head of AVP Division at Hyundai Motor Company and Kia, and Wang Yunfeng, General Manager of Baidu IDG and Vice President of Baidu Group.
Accordingly, Hyundai Motor Company and Kia plan to build a new business ecosystem with Baidu in various areas including ▲connectivity ▲autonomous driving ▲intelligent transportation systems ▲cloud computing. They will also actively develop compliance solutions using Baidu’s smart cloud to respond to China’s strengthened data regulations. Additionally, they plan to explore new products and new businesses utilizing artificial intelligence (AI).
According to the '2024~2029 China Connected Car Industry Market Analysis and Outlook Study' published by the China Commercial Industry Research Institute in January, the Chinese connected car market size is expected to reach 215.2 billion yuan (approximately 40.8235 trillion KRW) this year, with sales volume estimated at around 17 million units. This represents growth of 3.4 times and 2.4 times respectively compared to 2019.
Hyundai Motor Group plans to accelerate its mid- to long-term software strategy 'SDx Acceleration' through this strengthened cooperation. Hyundai Motor Company and Kia have collaborated with Baidu since 2014. They have applied various connectivity systems jointly developed with Baidu, including telematics navigation, voice recognition services, Car-to-Home/Home-to-Car, and smart content services, to mass-produced vehicles.
A Hyundai Motor Company and Kia official stated, "The goal of SDx is to create and provide optimized mobility devices and solutions that anyone can use by turning all movement in the world into a source of knowledge and innovation," adding, "We will strive to establish a connected car ecosystem in the Chinese market through strategic cooperation with Baidu."
(From the sixth person on the left) Lee Hyuk-jun, Vice President of Hyundai Motor Group China Limited, Song Chang-hyun, President and Head of Hyundai Motor·Kia AVP Division, Wang Yunfeng, General Manager of Baidu IDG and Vice President of Baidu Group, Shang Guobin, Vice President of Baidu Group, and other officials from both companies are taking a commemorative photo at the MOU signing ceremony held on the 27th in Beijing, China. (Photo by Hyundai Motor·Kia)
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