Tesla and Baidu Join Forces for Autonomous Driving in China: A Pivotal Moment for the Smart Vehicle Market

Tesla has reached an agreement with Baidu, the Chinese Internet search giant, allowing the car company access to its mapping license. This agreement is a crucial step for Tesla to implement autonomous driving in China. With this permission, Tesla can collect data on Chinese public roads and integrate its lane-level navigation system into its vehicles.

Obtaining these permits is a significant advancement for Tesla as it helps overcome regulatory hurdles to introduce advanced driver assistance features in the Chinese market. Baidu is one of around 20 qualified suppliers with the necessary module for self-driving functions in China. The smart vehicle market in China is growing rapidly, with industry associations releasing a list of connected car models that meet data security requirements in the country.

Other manufacturers such as BYD, Li Auto, Lotus, Hozon New Energy Automobile, and NIO are also part of this list. Tesla has taken steps to reassure Chinese authorities by installing a data center in Shanghai to comply with local laws and regulations regarding data processing.

The news of the agreement coincides with a surprise visit to Beijing by Tesla CEO Elon Musk, who discussed enabling autonomous driving modes in Tesla cars in China. Chinese Prime Minister Li Qiang highlighted Tesla’s success in China as an example of economic and trade cooperation between China and the United States.

Musk praised the performance of Tesla’s Shanghai factory, which produced over 710,000 vehicles in 2022 alone. He emphasized the progress of electric vehicles in China, stating that all cars will be electric in the future. Tesla has sold 1.7 million cars in China since entering the market a decade ago.