Hong Kong — China’s Tencent Holdings and Guangzhou
Automobile Group Company have agreed to collaborate on
internet-connected cars — a strategic pact that sent shares in Guangzhou
Auto surging.
The development of self-driving cars and fast-changing technology have set in motion a flurry of alliances between internet giants and car makers.
Earlier this year, Tencent bought 5% of US electric car maker Tesla for $1.78bon.
Tencent and Guangzhou Auto will work together to develop internet-connected cars and artificial intelligence-aided driving, as well as explore investment in areas such as auto-related e-commerce, so-called new energy cars and vehicle insurance, the car maker said in a filing late on Monday.
Guangzhou Auto said it aimed to tap Tencent’s expertise in mobile payments, social networking, big data and artificial intelligence.
Tencent will also provide cloud services and other technical support.
Hong Kong-listed shares of Guangzhou Auto were trading 5% higher on Tuesday morning. Tencent gained nearly 1% to a record high.
Tencent has been a relative latecomer among China’s largest tech firms to delve into the auto sector.
E-commerce giant Alibaba Holdings has a joint venture with Shanghai-based auto maker SAIC Motor, while Baidu has been developing self-driving cars.
SA’s internet and media company Naspers owns about one-third of Tencent.
Reuters
The development of self-driving cars and fast-changing technology have set in motion a flurry of alliances between internet giants and car makers.
Earlier this year, Tencent bought 5% of US electric car maker Tesla for $1.78bon.
Tencent and Guangzhou Auto will work together to develop internet-connected cars and artificial intelligence-aided driving, as well as explore investment in areas such as auto-related e-commerce, so-called new energy cars and vehicle insurance, the car maker said in a filing late on Monday.
Guangzhou Auto said it aimed to tap Tencent’s expertise in mobile payments, social networking, big data and artificial intelligence.
Tencent will also provide cloud services and other technical support.
Hong Kong-listed shares of Guangzhou Auto were trading 5% higher on Tuesday morning. Tencent gained nearly 1% to a record high.
Tencent has been a relative latecomer among China’s largest tech firms to delve into the auto sector.
E-commerce giant Alibaba Holdings has a joint venture with Shanghai-based auto maker SAIC Motor, while Baidu has been developing self-driving cars.
SA’s internet and media company Naspers owns about one-third of Tencent.
Reuters
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