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Tencent Partners With Foxconn In Electric Car Business

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Ma Huateng, chairman of Chinese Internet giant Tencent Holdings , is the latest Chinese technology billionaire to foray into the nascent market for Internet-connected cars.

Tencent Holdings, best known for its instant-messaging app WeChat, on Monday signed an agreement with Taiwan’s Hon Hai Precision Industry and Chinese luxury auto dealer China Harmony Auto Holding to explore opportunities in smart electric vehicles. The coalition would draw on Tencent’s Internet platform, Hon Hai’s manufacturing capabilities and China Harmony Auto’s dealership network.

The companies didn't provide further details.

Tencent’s arch-rival Alibaba Group Holding is a step ahead in making smart vehicles. The e-commerce titan and state-controlled SAIC Motor Corp announced earlier this month a $ 160 million investment in Internet-connected vehicles, and the first product may be launched next year.

Baidu Inc., operator of China’s largest search engine, is even more optimistic. Chief Executive Robin Li said during China’s parliament meetings in March that the firm may introduce an autonomous car as early as this year.

Tencent’s partners have been making preparations to make connected electric cars. China Harmony Auto in December signed a memorandum of understanding to acquire Green Field Motor Co. from Xinnengyuan Automobile Holding. Green Field, an obscure auto manufacturer, in September launched its e-X5 model-an electric SUV costing less than $ 10,000.

A week before Harmony’s proposed acquisition, Hon Hai invested HK $ 609 million for a 10.5% stake in the auto dealer, making the Taiwanese manufacturer the company’s second largest shareholder.

Hon Hai’s capabilities and experiences in the electric segment forms “ the basis of the creation of a strategic cooperation” to explore opportunities in electric vehicles, Harmony said at the time. Hon Hai, the manufacturer of Apple Inc’s iPhones, has manufactured touch screens used in some of models manufactured by Tesla Motors.