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Microsoft will collaborate with Volvo Cars on the development of automotive technologies in a variety of areas.

The companies demonstrated the use of Microsoft HoloLens to improve the auto customer experience. The HoloLens technology has the potential to open new sales channels by allowing dealers to provide prospective customers with a car configurator on the road or at shopping malls.

Volvo Cars senior vice president of marketing sales and service Björn Annwall, said: “HoloLens offers the freedom to create a bespoke experience which customers can steer themselves. Imagine using mixed reality to choose the type of car you want – to explore the colours and wheels, or get a better understanding of the features, services and options available.”

Both companies will work together on autonomous driving technologies while also working towards harnessing data from connected cars to build new services. The collaboration will also focus on the use of predictive analytics to boost safety.

Volvo is planning to undertake an autonomous driving experiment, known as Drive-Me, in Gothenburg by 2017, where customers will be provided with 100 self-driving and connected cars.