(Yicai Global) March 3 -- Chinese telecoms giant ZTE will set up a new automotive electronics product unit, it said in an internal document yesterday, as tech firms dash to gain a foothold in the smart car market.

The name of the new unit will be announced in due course, ZTE insiders told Yicai Global. It will be responsible for smart car electronics, smart internet of vehicles, smart car operating systems, smart automation (or assisted driving), and smart charging.

Shenzhen-based ZTE already has a subsidiary, Zonson Smart Auto, founded in 2015, which focuses on design, development, production, and sales of new energy buses, as well as development of intelligent driving and internet of vehicles applications, the insiders said.

The business model for smart cars is still being explored, the insiders said, adding that between now and 2030 China will have at least 400 million smart cars featuring fifth-generation connectivity and intelligent driving features, making the new sector an opportunity that tech firms cannot ignore.

ZTE has carried out field tests for internet of vehicles and autonomous driving in Tianjin, Shandong and Jiangsu. In the field of vehicle operating systems, ZTE’s automotive electronics product line was spun off in December 2018 to establish Unlimited AI Technology, whose products have been installed in the Chery Ant e-sports utility vehicle.

Chinese telecoms equipment giant Huawei Technologies has also established a new business unit dedicated to smart vehicle solutions, and is expected to boost its spending in the field of smart cars.

Editor: Tom Litting