Alibaba Teams Up With State-owned FAW to Build Smart Car Solutions

Now, Alibaba is collaborating with two of China’s "Big Four” state-owned automakers on smart vehicle systems.

Belinda Zhou
    Dec 27, 2019 3:10 PM  PT
Alibaba Teams Up With State-owned FAW to Build Smart Car Solutions
author: Belinda Zhou   

Alibaba Holding Group Ltd. (NYSE: BABA; HKEX: 9988) has partnered up with FAW Group Corp. to build digital infrastructure for smart cars.

Under the agreement, Alibaba-backed Banma Intelligent Travel System will deliver its smart operating system, AliOS, as reported by various Chinese media on Friday. In addition, Alibaba Cloud will help with marketing, research and development, user support and other services in the partnership. 

FAW is building a digital infrastructure using cloud computing, big data and mobile collaboration technology and eventually aims to develop smart solutions in logistics together with Alibaba, according to various reports.

Founded in 1953, Changchun-based FAW is the first automotive manufacturing company in China and one of the Big Four automakers in the country. The state-owned giant has three publicly traded subsidiaries, FAW Car Co. Ltd. (SZSE: 0800), Tianjin FAW Xiali Automobile Co. Ltd. (SZSE: 0927) and Changchun FAWAY Automobile Components Co. Ltd. (SSE: 0742.)

Alibaba has been collaborating with traditional car companies as early as July 2014, when it made a deal with SAIC Motor Corp. Ltd. (NYSE: SAIC). Together, they established BanmaNetwork Technology Co. in March 2015 after each invested 1 billion yuan ($143 million) into the venture to build connected car technology.

Now, Banma offers integrated solutions to intelligent and connected vehicles to Ford Motor Co. (NYSE: F), the Czech brand ŠKODA, Shanghai-based SAIC Motor's Roewe, Dongfeng Motor Corp.'s Citroen and others, according to its official website.

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(Image: Banma)

Shanghai-based SAIC is another of the Big Four state-owned Chinese automakers, participating in joint venture cooperations with Volkswagen and General Motors Co. (NYSE: GM).

Shares in Alibaba closed at $215.49 apiece on Friday, down 0.41%.