GUANGZHOU – Guangzhou Automobile Group Co., Ltd. (GAC) and Chinese internet giant Tencent signed a strategic cooperation agreement here on September 18 to create a smart connectivity brand.
On the one hand, the two sides will carry out business cooperation in the areas of IOV services, smart driving, cloud platform, big data, automotive ecosystem, and marketing and publicity. The two sides will launch a new generation of IOV innovation services with AI features. At the same time, Tencent will provide technical support for improving the security of GAC Group IOV solutions and give full play to the leading technology in cloud computing, the ability of AI, big data processing suite and mass transaction processing, and platform advantages. On the other hand, they will also have capital cooperation in auto e-commerce platform, auto insurance and mobility services fields.
With the in-depth development of business cooperation, GAC and Tencent will further discuss the capital cooperation in the new energy vehicle field and jointly develop that business.
In the first eight months of this year, GAC produced and sold 1.3 million and 1.28 million vehicles, up 28.64 and 29.14 percent respectively. Tencent has seen explosive growth in recent years with its popular Wechat and QQ communications platforms. Total revenues in the first half of 2017 rose 57 percent year-on-year to ¥106.1 billion.