Tencent Partners With BMW, SAIC, NIO To Capitalize On China's Giant EV Market

Tencent Holding Ltd TCEHY aims to sell technology to help foreign automakers tap China’s enormous electric vehicle market, CNBC reports.

Tencent Intelligent Mobility VP Liu Shuquan claimed collaboration with 40 auto brands, including Bayerische Motoren Werke AG BMWYY, SAIC, and NIO Inc NIO, covering 120 vehicle models. He also cited discussions with German and Japanese companies.

Liu’s team launched a new cloud computing product for automakers called the “Tencent Intelligent Automobile Cloud” to boost its international strategy.

The all-in-one cloud product also catering to domestic automakers claims to cover every technological aspect of an EV.

The user interface could be a selling point for China’s drivers considering Tencent’s dominance in the top online entertainment apps in China with WeChat, QQ Music, Tencent Video, and Tencent Maps.

With its new cloud computing product, overseas car companies could develop vehicles with navigation and assisted-driving features customized for China’s roads and topography, Liu claimed.

The cars letting passengers or drivers access Tencent apps from the vehicle’s platforms need to have an agreement with Tencent.

“The data is owned by [the] OEM, the consumer,” Liu said, referring to original equipment manufacturers who provide components and parts for another company’s product. We just provide cloud service to store that data. The second thing is we provide a whole ecosystem. That ecosystem not only include[s] our own service and content but also our partners’.”

The app-level partnerships began in 2018, as Tencent Cloud started to work with automakers for autonomous driving services. The move reflects Tencent’s continued overseas push to beat the domestic slowdown.

 Nio, XPeng Inc XPEV, and Li Auto Inc LI have surged at least 64% each over the past month featuring among the top gainers in Chinese stocks traded in the U.S., beating Tesla, Inc’s TSLA advances, Bloomberg reports.