Volvo Cars (www.volvogroup.com) has reached an agreement with Baidu, the leading Chinese Internet search provider, to jointly develop electric and fully ‘autonomous driving-compatible’ cars with the aim of mass-producing them for China — the world’s largest car market.

Volvo Cars is the first foreign car maker to collaborate this closely with Baidu to jointly develop customised autonomous-driving cars.

The partnership will allow both companies to develop and sell these vehicles to potential Chinese customers, underlining the Swedish company’s aspirations to be the supplier of choice for ‘mobility companies’ globally.

The agreement will see Volvo Cars and Baidu pool resources to take the next step and prepare for the mass production of fully electric and autonomous cars; Baidu will contribute with its Apollo autonomous-driving platform, while Volvo will provide access to its automotive expertise and advanced technologies. Industry forecasts show that China is likely to become the world’s largest single-country market for autonomous cars in the coming decades.