Chinese automotive industry is moving briskly towards connected cars. Recently China’s Tencent Holdings and Guangzhou Automobile Group Company entered into an agreement to collaborate on internet-connected cars, according to a report by Reuters.
Under the agreement, both the companies will work together to develop internet-connected cars and artificial intelligence-aided driving. The companies will also explore investment in areas such as auto-related e-commerce, so-called new energy cars, and auto insurance.
Tencent has also got 5 percent stake in U.S. electric car maker Tesla. Tencent has been working in the field of mobile payments, social networking, big data, cloud services and artificial intelligence. Guangzhou Auto will benefit from that.
A huge growth is expected in the connected car market in China, consumers are demanding for Smartphone features such as making and receiving calls, music on demand, voice messages and infotainment in vehicles. This has made technology companies in China to take interest in automotive sector. Apart from Tencent, other Chinese companies are also active in this sector like Baidu is working on developing self-driving car, Alibaba Holdings and SAIC Motor Corp Ltd have a joint venture.