China’s leading e-commerce company Alibaba Group has announced that it will create its automotive division to integrate its automotive related services.
“Currently, there are five teams under the new division” responsible for used cars, O2O (online to offline) service, car products, application development and marketing, respectively, Wang told the Beijing-based Economic Observer.
“Since last year, the internet has been bringing some changes to the automotive industry,” Wang said. Automobile manufacturers BMW, SAIC Motors and General Motors have also changed their approach toward O2O car services, he said.
Wang said his group is also expecting the automobile industry to bring new developments to the internet.
The paper said it has learned that Alibaba’s new division will encompass large data marketing, auto finance business, a platform for car owners, a marketing platform called Alimama, an O2O car service, a navigation system and other services.
There have been some indications in the previous months that the new services were coming, including a personnel reshuffle in which Zhang Jianfeng was appointed to head Alibaba’s two car sale websites.
Alibaba has now established an integrated system that includes car manufacturing, car sales, and other car services.
Wang also told the paper that the new division will continue to expand its services. In April, it will enter into partnerships with local and international car brands and in May will begin selling imported automobiles, while a new app will be released in late June, he said.
The business of automotive e-commerce is burgeoning, and Alibaba’s automotive division came “at the right time,” Wang said.