(Yicai) Nov. 6 -- Cariad, the auto software unit of German carmaker Volkswagen Group, has joined hands with Chinese handset giant Vivo to come up with innovative cross-industry solutions for vehicle-smartphone connectivity.

Cariad's China unit and Vivo will jointly set up the Mobile x Mobility Fusion Joint Innovative Lab, the Wolfsburg-based company announced on Nov. 3.

The lab will focus on researching and developing highly competitive smart cockpits, including the synchronization and integration of human-computer interaction interfaces between smartphones and smart cars, the integration and sharing of user data in vehicles, and the seamless connection and smooth flow of smart applications inside and outside autos, Cariad said.

The pair also plans to cooperate in technical fields involving artificial intelligence and large language models in the future, Cariad noted.

The M Lab's R&D team will be staffed by local technicians from Cariad China and Vivo to respond to and meet the needs of Chinese consumers more quickly, sources at Volkswagen China told Yicai.

A new trend has emerged in China for the mobility and telecoms industries to cooperate amid the development of intelligent vehicles.

Huawei Technologies, Xiaomi, and other handset giants have begun car businesses, while Geely Auto, Nio, and other carmakers have started to make phones. The two sectors can combine their respective strengths, including the powerful software capabilities of smartphone makers and tech firms and the hardware, manufacturing, and other advantages of automakers to create smart cars that offer a better driving experience.

On July 25, Volkswagen said it invested USD700 million for a 5 percent stake in Chinese electric vehicle startup Xpeng Motors to jointly develop new models with smart connectivity. They plan to make two new VW-branded EV models for the Chinese mid-sized car market, debuting them in 2026, and jointly develop a new localization platform for the next generation of smart connected vehicles, it noted.

To speed up the development of smart car software, Cariad has been stepping up cooperation with Chinese firms. In addition to Xpeng and Vivo, it has also established joint ventures with tech companies Horizon Robotics and Thunder Software Technology.

Volkswagen's luxury car brand Audi and its Chinese partner SAIC Motor also inked a deal to jointly and quickly develop and expand the smart connected vehicle product mix in the high-end market, it announced on July 26.

Editors: Tang Shihua, Martin Kadiev