(Yicai Global) Sept. 28 -- Antivirus developer 360 Security Technology is hoping to endow car firms with digital capabilities and it will avoid disorderly expansion in the sector, founder and president Zhou Hongyi told Yicai Global.

360 is one of a growing number of Chinese tech firms moving into the auto sector, and it aims to provide network security technologies for smart cars, Zhou told Yicai Global at the 2021 World Internet Conference that kicked off in Wuzhen, Zhejiang province on Sept. 26.

Internet firms' positioning is changing in the new era, Zhou said, adding that they should be willing to play a supporting role in cooperation with businesses in conventional industries rather than chasing dominant market positions in the platform economy.

In April this year, Beijing-based 360 led the Series D funding round that raised CNY3 billion (USD464.5 million) for Neta Automobile, the NEV brand of Shanghai-based Hozon New Energy Automobile, becoming the second-largest shareholder. Two Neta models have been released since 2018, with 33,278 units delivered in the first eight months this year, an annual increase of 367 percent.

Mass production of the latest model is expected to start by the third quarter of 2022, Zhang Qi, executive vice president of Neta Auto Intelligence Research Institute, disclosed at the WIC.

Various leading internet firms in China have entered the auto sector this year, with search engine giant Baidu cooperating with Geely to set up Jidu Auto in March, and handset maker Xiaomi launching its car-making affiliate in Beijing earlier this month. 

Tech firms should enhance the technological strength and brand image of Chinese manufacturing, Xiaomi's founder Lei Jun said in a WIC speech.

Editors: Dou Shicong, Tom Litting