Guangzhou Automobile Group (GAC) signed an agreement with Tencent, one of China's largest internet companies on Sept 18 to deepen cooperation in areas including Internet of Vehicles, smart driving and intelligent connected vehicles.

The agreement was signed by Pony Ma, chairman and cheif executive officer of Tencent and Zeng Qinghong, chairman of GAC. According to the deal, the two parties will work together in developing cloud platforms and big data services for intelligent connected vehicles and explore opportunities in launching online automotive retailing platforms and car insurance.

Pony Ma, chairman and CEO of Tencent and Zeng Qinghong, chairman of GAC sign a cooperation agreement in Guangzhou on Sept 18. [Photo/xinhuanet.com.cn]

Tencent, with subsidiaries providing interactive entertainment, social networking, web portals and e-commerce, will provide all-dimension internet services and products to GAC. The cooperation of the two companies will promote China's growing intelligent connected vehicle industry.

As the partnership deepens, the two parties will also seek capital cooperation in the new energy automobile industry.

GAC is engaged in diversified businesses for both the domestic and international market, including the design and production of vehicles and parts, auto sales and logistics, and related services such as finance and insurance.

From January to August this year, GAC has sold nearly 1.3 million automobiles, an increase of 29 percent year-on-year. The cross-field cooperation with Tencent is considered a key step for GAC to seek breakthroughs in developing its intelligent connected vehicle division and improve the company's core competitiveness.

An artist's impression shows the GAC Intelligent Connected New Energy Vehicle Industrial Park which began construction on April 27. [Photo/xinhuanet.com]