China search giant Baidu considering making its own electric vehicles

China’s Baidu Inc is considering making its own electric vehicles and has held talks with automakers about the possibility, three people with knowledge of the matter said, the latest move in a race among tech firms to develop smart cars.

The search engine leader, which also develops autonomous driving technology and internet connectivity infrastructure, is considering contract manufacturing, one of the people said, or creating a majority-owned venture with automakers.

The initiative would be a step up from internet peers such as Tencent Holdings Ltd, Amazon.com Inc and Alphabet Inc, which have also developed auto-related technology or invested in smart-car startups.