Volvo Cars has said it has reached an agreement with Baidu to develop mass-produced electric and autonomous compatible cars for the Chinese market.

Volvo is at present, the first overseas OEM to work with Internet search provider Baidu on such a project and the partnership aims to not only provide these cars to Chinese customers, but also serve as a foundation for Volvo’s global ambitions as a preferred mobility supplier.

Under the arrangement, Volvo Cars has said it will pool resources with Baidu to make these mass-produced vehicles a reality, with Baidu selecting Volvo to partner on the project due to its long-standing reputation for building safe cars.

The terms of the agreement will also see Volvo provide access to expertise in advanced vehicle technology with Baidu providing its autonomous driving platform.

Industry projections still show that China is expected to become the world’s single largest autonomous vehicle market*, with 14.5 million expected to be sold in the country by 2040, versus 33 million AVs globally.

*Data from IHS Markit (click here to view)