Internet trio set for clash in auto market

The automobile industry has officially become the latest battleground for China's three Internet giants after Tencent Holdings Ltd announced a foray into smart cars.

The owner of China's most widely used instant messaging app WeChat has teamed up with Taiwan's Hon Hai Precision Industry Co Ltd and luxury car dealer China Harmony Auto Holding Ltd to explore a business model to manufacture and sell smart electric cars.

The Shenzhen-based Tencent did not reveal the details of the partnership, but the move puts it in direct competition with rivals Baidu Inc and Alibaba Group Holding Ltd, which have already expanded into the country's nascent market for Internet-enabled car sector, in partnership with leading automakers.