By Nathan Allen 
 

Continental AG (CON.XE) and Chinese ride-hailing company Didi Chuxing have formed a partnership to research and develop intelligent and connected vehicles, the companies said Tuesday.

The companies said the agreement will cover hardware, software and services, while also making use of Didi's experience in artificial intelligence and Continental's engineering expertise.

Auto makers and their suppliers are increasingly looking to gain a foothold in the ride-hailing and car-sharing markets in an effort to offset the declining popularity of car ownership among young people.

Under the partnership Continental said it will supply an intelligent head unit for Didi's first generation of shared vehicles, which it is manufacturing under a joint venture with Chinese startup CHJ Automotive.

"Our cooperation is set to accelerate the integration of intelligent mobility technology into the leading transportation platform in China," Continental China's Chief Executive Enno Tang said.

Didi, which is often touted as China's answer to Uber Technologies Inc., raised $4 billion in new funding in December and recently said it was working on a joint venture to share technology with Volkswagen AG (VOW.XE).

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

July 10, 2018 03:55 ET (07:55 GMT)