Home
Others
Others News
Hon Hai, Tencent Partner in Electric Car Business

Hon Hai, Tencent Partner in Electric Car Business

By Reuters | Updated: 23 March 2015 16:18 IST

Click Here to Add Gadgets360 As A Trusted Source

Taiwan's Hon Hai Precision Industry Co Ltd on Monday said it has partnered Chinese social networker Tencent Holdings Ltd to develop opportunities related to electric vehicles, marking the latest tech foray into "smart" cars.

Hon Hai, WeChat operator Tencent and luxury car dealer China Harmony Auto Holding Ltd signed an agreement to work together in the Chinese city of Zhengzhou, Henan province, the contract manufacturer said without detailing specifics.

The partnership would put Tencent on a par with online peers Alibaba Group Holding Ltd and Baidu Inc, which have already moved into the nascent market for Internet-connected cars vie tie-ups with major auto makers.

Alibaba Discussion

Explore More...

Hon Hai said the coalition would form a working team drawing on its manufacturing capabilities, Tencent's Internet platform and China Harmony Auto's dealership network, to explore commercial possibilities in smart electric vehicles.

Hon Hai, known more for assembling the bulk of Apple Inc's iPhones, already has experience with electric vehicles having manufactured the touch screens in some cars made by US automaker Tesla Motors Inc.

The absence of a carmaker from its new partnership appears to put the group on a different tack to that of Alibaba or Baidu in targeting electric vehicles.

That market has largely failed to flourish in China, though the government has given it years of subsidies and support. The government has redoubled efforts to promote electric vehicles, renewing tax breaks and setting aggressive emission standards.

Hon Hai has manufacturing operations across China and has been working to diversify from the competitive, low-margin contract business. As part of that drive, it bought around 10 percent of Zhengzhou-based China Harmony Auto last year.

China Harmony Auto was not available to comment on the latest partnership. Tencent declined to provide immediate comment.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.