Internet giants in race to driverless future
Chinese Internet giants Baidu Inc and LeEco Holdings Co Ltd are squaring up at the start of what could become a classic race to develop the world's first commercial self-driving vehicle.
Just hours after LeEco, formerly LeTV Holdings Co Ltd, unveiled details of its car-making strategy, a Baidu executive said on Thursday it is set to test-drive the company's first driverless vehicle in the United States.
Beijing-based LeEco was the first to touch the throttle. It appointed Ni Kai, a former head of Baidu's auto-driving development team, to lead its auto project.
LeEco on Wednesday also announced it was partnering with six top Chinese automotive manufacturers－including BAIC Motor, BYD Co and Dongfeng Motor－to embed a LeEco-developed in-car operating system.
Ding Lei, head of LeEco's automobile arm, said teaming up with traditional carmakers will help the company expand its products and services in the automobile market, before the auto-driving era arrives.
"Our goal is to build an open platform that every player in the industry can join in," said Ding.
LeEco is scheduled to show off a concept self-driving vehicle at an automobile expo in Beijing next month.
Baidu, meanwhile, has also been quick off the grid to promote its ambitious strategy.
The company's chief scientist Andrew Ng was quoted by The Wall Street Journal as saying the 16-year-old online search provider is set to test its auto-driving technology in the US, a major step toward rolling out its first car available for commercial market by 2018.
Late last year, Baidu tested its technology in Beijing when a heavily modified BMW sedan performed a test run on a busy highway.
Baidu's top executives are lobbying Chinese and US legislatures to support the development and commercial use of self-driving technologies.
Robin Li, its founder and CEO, urged Chinese authorities earlier this month to implement regulations and technology standards on self-driving cars.
Appearing at a hearing hosted by the US Senate Commerce Committee on Tuesday, Ng also called on the US government to remove certain regulations that hinder the commercialization of robot cars.
Yang Huachao, an analyst with China Galaxy Securities Co, said the auto-driving market is likely to really start accelerating around 2020, when Baidu, LeEco, Google Inc, Alibaba Group Holding Ltd and other tech companies all introduce their retail models.
"The auto-driving sector is a long-term investment opportunity.
"Companies such as Alibaba, Baidu and LeEco were among the first developers of the technology, and are likely to start earning from it a little earlier than others," said Yang.
A report from Beijing-based broker Essence Securities Co Ltd said likely support from the government will fuel auto-driving market growth over the next several years.
But it also warned of the possibility that some companies could fail to deliver the vehicles on time due to technical difficulties.
By 2025, approximately 20 million self-driving cars will be built worldwide, and the market could worth up to $1.9 trillion, according to consultancies Juniper Research and McKinsey & Co.
Beijing-based LeEco was the first to touch the throttle. It appointed Ni Kai, a former head of Baidu's auto-driving development team, to lead its auto project.
LeEco on Wednesday also announced it was partnering with six top Chinese automotive manufacturers－including BAIC Motor, BYD Co and Dongfeng Motor－to embed a LeEco-developed in-car operating system.
Ding Lei, head of LeEco's automobile arm, said teaming up with traditional carmakers will help the company expand its products and services in the automobile market, before the auto-driving era arrives.
"Our goal is to build an open platform that every player in the industry can join in," said Ding.
LeEco is scheduled to show off a concept self-driving vehicle at an automobile expo in Beijing next month.
Baidu, meanwhile, has also been quick off the grid to promote its ambitious strategy.
The company's chief scientist Andrew Ng was quoted by The Wall Street Journal as saying the 16-year-old online search provider is set to test its auto-driving technology in the US, a major step toward rolling out its first car available for commercial market by 2018.
Late last year, Baidu tested its technology in Beijing when a heavily modified BMW sedan performed a test run on a busy highway.
Baidu's top executives are lobbying Chinese and US legislatures to support the development and commercial use of self-driving technologies.
Robin Li, its founder and CEO, urged Chinese authorities earlier this month to implement regulations and technology standards on self-driving cars.
Appearing at a hearing hosted by the US Senate Commerce Committee on Tuesday, Ng also called on the US government to remove certain regulations that hinder the commercialization of robot cars.
Yang Huachao, an analyst with China Galaxy Securities Co, said the auto-driving market is likely to really start accelerating around 2020, when Baidu, LeEco, Google Inc, Alibaba Group Holding Ltd and other tech companies all introduce their retail models.
"The auto-driving sector is a long-term investment opportunity.
"Companies such as Alibaba, Baidu and LeEco were among the first developers of the technology, and are likely to start earning from it a little earlier than others," said Yang.
A report from Beijing-based broker Essence Securities Co Ltd said likely support from the government will fuel auto-driving market growth over the next several years.
But it also warned of the possibility that some companies could fail to deliver the vehicles on time due to technical difficulties.
By 2025, approximately 20 million self-driving cars will be built worldwide, and the market could worth up to $1.9 trillion, according to consultancies Juniper Research and McKinsey & Co.
