(Yicai Global) Jan. 9 -- E-commerce giant Alibaba Group Holding, which has made big investments in autonomous driving, is allying with Chinese car-making giant FAW Group to develop a new operating system for connected vehicles.

Based on the Alibaba-led open mobility platform Banma Network Technology,  Changchun, Jilin province-based FAW will use Banma technologies and resources to design smart cockpit solutions for its upcoming vehicles, Alibaba told Yicai Global today.

Both parties will also explore other frontier technologies including edge computing, Internet of Things and blockchain for application in areas such as smart logistics and high-definition maps so as to accelerate the digitalization of the auto sector, Hangzhou-based Alibaba said.

Alibaba and SAIC Motor set up Banma in 2015 with an investment of CNY1 billion (USD144 million) each to develop a smart vehicle system based on Alibaba's intelligent car operating system AliOS. Meaning 'zebra' in Mandarin Chinese, Banma restructured last August with Alibaba becoming its major shareholder. Alibaba transferred all AliOS intellectual property rights and businesses to the joint venture.

Shanghai-based Banma is conducting a new round of financing for a valuation of CNY14 billion (USD2 billion), tech website 36Kr reported last December. More than 700,000 autos have been equipped with the system so far.

Editor: Kim Taylor