Waymo and Jaguar just teamed up to develop a fleet of luxury all-electric self-driving cars

Waymo and Jaguar announced plans to jointly develop a large fleet of all-electric, self-driving luxury vehicles.

The announcement occurred a day before two media preview days at the New York auto show.

The companies said that testing, using the recently launched I-PACE, would commence later this year.

"Up to 20,000 I-PACEs will be built in the first two years of production and be available for riders of Waymo's driverless service, serving a potential one million trips per day," the automaker and the autonomous-mobility division of Alphabet said in a statement.

"While we've been focused at Waymo on building the world's most experienced driver, the team at Jaguar Land Rover has developed an all-new battery-electric platform that looks to set a new standard in safety, design and capability," Waymo CEO John Krafcik, who was on hand in New York to reveal the initiative, added.