Tencent forms strategic partnership with carmaker Dongfeng Motor

While Tencent is chasing domestic carmakers, its major competitor Alibaba holds out olive branches to foreign auto giants.

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Tencent forms strategic partnership with carmaker Dongfeng Motor

Tencent, one of China’s largest tech companies, announced today a strategic partnership with Dongfeng Motor, a state-owned carmaker.

The partnership will see both parties cooperating on seven sectors including smart mobility, smart logistics, car safety, autonomous driving, according to a statement from Tencent.

Zhu Yanfeng, the boss of Dongfeng Motor, said his company could benefit from Tencent’s technologies and experience in vehicular networking, mobility and big data to push for the auto industry’s digitalization.

Dongfeng is the latest domestic carmaker to team up with the Shenzhen-based tech giant. Tencent has previously formed partnerships with 20 carmakers, including some of the biggest names in the industry such as SAIC, Changan, and GAC.

Earlier this month, Tencent and GAC launched OnTime, a race-hailing service, in the Greater Bay Area. While Tencent is pursuing domestic carmakers, its major competitor Alibaba woos foreign auto giants.

Alibaba has announced a plan to add its AI solution, Tmall Genie Auto, to some car models of Audi, Renault, and Honda.

China is one of the world’s largest car markets. As of the end of 2018, China’s car ownership reached 240 million.