Hyundai and Kia collaborate with Baidu for connected cars

• China is expected to achieve 100% connectivity penetration by 2028.

Hyundai Motor and Kia Corp said they have signed a memorandum of understanding (MoU) with China’s Baidu Inc to develop technologies for connected cars.

The two South Korean carmakers and will join hands in a wide array of areas, including connectivity and self-driving technologies, with Baidu and will also utilise Baidu’s smart cloud computing technology to address Beijing’s enhancing data regulations.

“Through the strategic collaboration with Baidu, we will make efforts to establish the ecosystem for connected cars in the Chinese market,” Hyundai and Kia said in a press release.

The agreement came amid the growing market for connected cars in China.

The annual sales of connected cars in China are anticipated to reach 17 million units this year, marking a sharp rise from 7.2 million units tallied in 2019, Hyundai said, citing Chinese data.

According to Counterpoint Research, China is expected to achieve 100 per cent connectivity penetration by 2028. This development positions China to lead the global connected car sales market by 2030, with US, India, Japan, and Germany following suit.

These top five countries are projected to collectively account for over two-thirds of global connected car sales by 2030.

 “China is poised to dominate the connected car market, fueled by the rapid adoption of EVs, C-V2X and other connected infotainment features. Domestic EV manufacturers such as BYD, NIO, Xpeng and Li Auto are striving to differentiate their offerings from traditional players and expand into international markets,” Soumen Mandal, Senior Analyst at Counterpoint Research, said.

Hyundai and Kia have been working closely with Baidu since 2014, including the development of voice recognition technology.

On April 25th, Euisun Chung, Hyundai Motor Group’s executive chair, said that Hyundai will make India as its key export hub and roll out first ‘Made in India’ electric car from its Chennai plant in 2025.