China`s Tencent Holdings and Guangzhou Automobile Group Company Ltd 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 automakers. Earlier this year, Tencent bought 5 percent of U.S. electric car maker Tesla Inc for $1.78 billion.
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 auto insurance, the automaker 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 percent higher on Tuesday morning. Tencent gained nearly 1 percent 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 Corp Ltd, while Baidu Inc has been developing self-driving cars.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)