ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business deals

Hyundai taps Tencent for connected-car entertainment

Move marks rare partnership for South Korean automaker in telematics

Hyundai Motor shows off its Sonata Turbo at a media preview of the Seoul Motor Show on March 28. The South Korean carmaker seeks to regain traction in China's auto market.   © AP

SEOUL -- Hyundai Motor has partnered with Chinese technology group Tencent Holdings in telematics, an area that covers safety and entertainment systems for connected cars, people familiar with South Korean automaker's plans said on April 9.

The partnership will likely focus on entertainment, such as music streaming, Hyundai sources said. Kia Motors, a member of the Hyundai Motor group, is already working with Tencent to stream music to autos.

Hyundai has fallen behind the competition in the field and likely seeks to close the gap by incorporating Tencent's know-how into vehicle development.

The carmaker has had no notable partners in the field except Chinese internet search leader Baidu, with which it works on navigation and voice recognition.

Tencent's group spans leading Chinese social network WeChat, a related digital payment service, and streaming music apps, as well as investments in numerous tech startups.

The automaker has denied news reports that it will jointly develop self-driving software with Tencent. It would not disclose details of the partnership.

The tie-up is likely also intended to improve Hyundai's image among Chinese government officials and consumers.

The carmaker's sales have slumped in the world's largest auto market following the 2017 deployment of a U.S.-developed missile shield in South Korea -- a move strongly protested by Beijing. It is now considering streamlining production in China.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends May 26th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media