(Yicai Global) Nov. 17 -- Chinese internet giant Tencent Holdings Ltd. [HKG:0700] and Guangzhou Automobile Group Co. [SHA:601238;HKG:2238] who struck a new strategic agreement yesterday and released their smart connected vehicle concept, just one day before the Guangzhou International Motor Show.

The pair debuted the iSPACE electric concept car, GAC's latest achievement in the connected vehicles sector based on Tencent's AI in Car system, which combines the internet firm's capabilities in safety, content, Big Data, cloud computing and artificial intelligence.  The two companies pledged to work together to promote the intelligent vehicle sector, accelerate the release of the AI in Car system and build an industry ecosystem.

Internet-connected vehicles address traffic safety and efficiency issues to provide a more pleasant driving experience. The cars use in-vehicle and vehicle-to-vehicle communication, sensors, radar, GPS positioning and artificial intelligence to allow vehicles to map out their environment and determine any safety issues. The ability to perceive external environments allows cars to safely reach their destination and could eventually replace human driving.

Tencent wants to be an enabler in China's smart vehicle industry, not a disrupter, said Pony Ma, chairman of the internet behemoth. It will provide more inclusive, innovative and sustainable smart solutions for auto companies by collaborating with them to build smart connected platforms, making cars a smart terminal for future life, he added.

GAC and Tencent will conduct customized development in connected vehicles and hope to mass product such cars next year. The carmaker hopes to release several models using vehicle-mounted smart terminals jointly produced by the two companies, which will provide voice interaction, smart travel and personalized content for vehicle owners, GAC's product development plan shows.