The Alibaba Cloud and Deloitte have opened an automotive application center in China

By TechThop Team

Posted on: 16 Aug, 2022

A Chinese cloud vendor and Deloitte China are launching a center to develop apps for the automotive industry, which they say will include autonomous driving and smart manufacturing.

As part of its collaborative effort with Deloitte China, Alibaba Cloud and Deloitte China have opened a facility dedicated to developing automotive applications. By 2035, they predict it will be home to the world's largest autonomous vehicle industry. 

The new Deloitte-Alibaba Cloud Auto Industry Center will develop applications such as autonomous driving, smart manufacturing, and digital marketing, the two companies announced Tuesday.

Deloitte China's automotive cloud services team will support the center with products and services encompassing digital supply chain, intelligent network connectivity, and cybersecurity.

AI and networking resources from Alibaba's cloud computing platform will also be used. As part of their partnership, the two companies will help the automotive sector to deploy cloud services and digitalize.

As a result of Deloitte's research, Andy Zhou, Deloitte's China's automotive industry lead, predicted that China would be home to more than 5.7 million autonomous vehicles by 2035. 

As many as 82.5 million autonomous vehicles will be on the road throughout the world by 2030. The Chinese autonomous driving industry has ushered in a new era driven by technology competition, ecology, consumer perceptions, and regulations.'

A general manager for Alibaba's vehicle industry claims Alibaba provides cloud services to 70% of China's automotive industry. We are confident that software-defined vehicles will enable more enterprises to digitalize and become cloud-native which will benefit all aspects of the vehicle value chain.' 

A draft bill outlining guidelines for self-driving public transport vehicles was released by China last week as part of its Bus Rapid Transit system. The proposed law would categorize AVs into three categories to facilitate taxi services under controllable scenarios.

The Chinese automotive giant Baidu last week introduced commercial driverless taxi services in Wuhan and Chongqing, expanding its transport options beyond Beijing. Apollo Go was approved by regulatory agencies in the two Chinese cities to collect fares.

The company's CEO Daniel Zhang said its cloud revenue grew 10% year over year. Several factors contributed to the slowdown, including softer demand from domestic internet customers, slow macroeconomic activities, and delays in hybrid cloud initiatives because of COVID-19's re-emergence.

The company will focus on enhancing cloud capabilities in AI and tapping growth opportunities in 'sunrise industries and customers', Zhang stated. In the recent quarter, non-internet industries accounted for 53% of the company's cloud revenue, up over 5% from last year. 

As part of a five-year plan announced by China last December, the country aims to become a global robotics innovation hub by 2025. High-end advanced robots will be used in the automotive, aerospace, railway, logistics, and mining sectors.

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