Alibaba accelerates into car spare parts sector

Alibaba Group Holding Ltd is elbowing its way into the car spare parts and supply chain market by forming a new joint venture with a local firm that it hopes will become the "unicorn" of the country's emerging automotive aftermarket.

The internet giant, which tapped into the auto sector almost four years ago, said late on Wednesday that it will team up with Zhejiang Jingu Co Ltd, a vehicle parts supplier to the likes of General Motors, Volkswagen and Ford, to raise China's auto service level.

Under the agreement, Alibaba, the largest shareholder, will inject an undisclosed amount in the new entity, while Jingu will consolidate its subsidiary supply chain vendors, known as Carzone and Qccr, the parties said in a news release.