The race is on: China’s internet companies take to the roads with smart cars

Earlier this week, we saw Tencent join up with Foxconn and China Harmony with the aim of producing smart electric cars. But Tencent is far from the only Chinese internet company entering this space. In fact, Baidu, LeTV, and Alibaba all already have made moves into this area as well.

It may seem strange for so many internet companies to be suddenly getting into the car business. But digitizing cars will give these companies access to all kinds of new data about user lifestyle habits, and that data will be valuable across all of their online offerings. Plus, China’s government is pushing for the development of more electric cars, so there’s a lot of potential for growth in this market. Electric vehicles are almost certainly the future in a country with pollution problems as serious as China’s.

But which internet company is the most likely to win the race onto China’s roadways? Here’s a quick rundown of what each of these companies brings to the table (as far as we know – none of these cars have actually been shown in public yet).

Tencent

Partners: Foxconn (manufacturing), China Harmony (dealerships)

When it’s coming out: Unclear.

Pros: As Apple fans know, Foxconn is more than capable of producing quality products, and Tencent’s domination of China’s social media landscape right now means that everyone in the Middle Kingdom has an account with Tencent. The company might be able to use that to integrate some very cool things into its car.

Cons: Foxconn doesn’t have much experience making cars, although it’s something the company has been working on for a while and it does currently make an electric car battery.

Alibaba