Investors commit $234m to Alibaba, SAIC internet car venture

Alibaba and SAIC teamed up to develop internet-enabled vehicles – which use internet-of-things (IoT) technology to improve the driving experience, from syncing cars and smart phones to providing intelligent navigation systems – in 2014. They launched a RMB1 billion dedicated smart car fund the following year.

SAIC has since introduced three mass production internet cars on its own – a Rover, an MG and a Maxus SUV – and a fourth in conjunction with Dongfeng Citroen. In the second half of this year, three more cars will be released by Dongfeng Citroen, Changan Ford, and Qoros Auto, each equipped with Banma technology. Banma is based on AliOS, an Android operating system developed by Alibaba Cloud for devices such as smart TVs.

The technology is intended to allow a higher level of vehicle customization. It is also open source, enabling third-party service providers to create apps for car manufacturers. Banma will use the new funding for recruitment purposes and to support R&D efforts aimed at consolidating its market-leading position.

"With changes in the electronic architecture of the automobile and the introduction of the mobile internet ecosystem, intelligent networking has become an area of rapid development, just like electrification before it. As the leader in this field, Banma is accelerating the implementation of an open source strategy that will let more cars use its operating system and drive development of the global automotive industry," Jun Sui, a managing director at SDIC, said in a statement.

Established in 2009, SDIC Fund Management manages and advises more than RMB60 billion of capital for the likes of SDIC and the National Council for Social Security Fund (NSSF). It focuses on investments in healthcare, advanced manufacturing, technology, media and telecom, and environmental protection. Yunfeng was co-founded by Jack Ma, Alibaba's founder and executive chairman.

A number of funds have been launched with a view to tapping growth in smart car technologies. Most recently, Renault, Nissan Motor and Mitsubishi Motors established a $1 billion vehicle that will invest in the area, with a strong focus on Asia. Meanwhile, Baidu and Singapore technology conglomerate Asia Mobility Industries agreed to pool $200 million for advanced transportation investments in Southeast Asia.

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• Topics
• Greater China
• Technology
• Early-stage
• China
• automobiles
• Alibaba Group
• Yunfeng Capital
• SDIC Fund Management