(Yicai Global) Sept. 19 -- Guangzhou Automobile Group Co. (GAC Group) [SHA:601238;HKG:2238] and Chinese internet giant Tencent Holdings Ltd. [HKG:0700] have agreed a deal to cooperate in multiple areas, including the Internet of Vehicles (IoV) for intelligent connected vehicles, smart driving, cloud platforms, and Big Data, to boost development, GAC Group said in a press briefing on Sept. 18.
The pair will work together on intelligent voice, travel and listening services using Tencent's vastly popular social media and mobile payment platform Wechat.
GAC will leverage Tencent's social media capabilities to provide a new generation of IoV innovation services featuring artificial intelligence. The duo will also work on intelligent connected vehicle brands and cooperate in finance, innovation, advertising, travel, after-sale services and other areas.
They will also explore capital cooperation in mobile travel, automobile e-commerce platforms, new-energy vehicles, and automobile insurance.
GAC Group sold 963,500 vehicles in the first six months of the year, up 31 percent annually while total revenue increased 62 percent to CNY34.8 billion (5.28 billion). Net profits grew 55 percent to CNY6.2 billion.
The strategic cooperation agreement will further boost GAC Group's plan for smart vehicle systems, industry insiders said.