Alibaba has announced a strategic partnership with FAW Group, one of China’s largest automobile companies. Under the terms of the partnership, they will jointly build next-generation Intelligent Connected Vehicles (ICV) in China, while promoting the use of digital intelligence in the auto industry. FAW Group has established joint-ventures with international brands including Volkswagen, Toyota and Mazda.
The partnership will leverage Banma Network Technology, an Alibaba-led open mobility platform, in order to build the new ICV operating system. In particular, Banma’s technologies and platform resources will be used to help FAW design smart cockpit solutions for its upcoming vehicles.
In addition, FAW will establish its global digital infrastructure by leveraging Alibaba’s ecosystem resources, including Alibaba Cloud’s global infrastructure. The automobile giant will also look to boost its capabilities in product research and development, marketing, customer services and operations through Alibaba’s data intelligence technologies.
Both parties also agreed to explore other frontier technologies including edge computing, Internet of Things, and blockchain for various applications – such as smart logistics and high definition maps – so as to accelerate the digitalization of the auto sector.
Alibaba began developing its own auto operating system in 2010 and debuted its first internet-connected car in 2016. Today, its internet-connected cars offer an unprecedented experience due to a wide array of services including AR navigation, intelligent speech recognition, high-definition maps, O2O service booking, food maps and drive-through payment capabilities. Around one million cars equipped with Alibaba’s auto solutions are driven in China. The cars are made by SAIC, Dongfeng Peugeot Citroen Automobile Company, Changan Ford and Škoda Auto.