The joint venture, BAIC-Xiaoju New Energy Auto Technology Co. Ltd, will see the two collaborate on new energy vehicles as well as artificial intelligence projects.

On Monday, as per a statement released by China’s Didi Chuxing, it had set up a joint venture with BAIC’s Beijing Electric Vehicle Co., in order to work on new energy vehicles and artificial intelligence projects.

Beijing Electric Vehicle Co is a unit of Chinese carmaker BAIC.

This joint venture BAIC-Xiaoju New Energy Auto Technology Co. Ltd, aims to develop “next-generation connected-car systems”, said Didi in a statement.

Incidentally, Didi is China’s largest ride-hailing operator.

The development assumes significance since through this joint venture, Didi and and state-owned BAIC are aiming to align their commercial interests with China’s new energy vehicles (NEVs) market policy.

China wants to stop selling gas driven car models by 2025.