Recently, Tencent has made significant strides in the automotive sectorIts subsidiary, Yiche, which has been a longstanding player in the industry, has announced a rebranding to "Tengyi Technology," symbolizing a complete overhaul of its operational ecosystemThis transformation signals a pivot from a purely vertical business model to one that embraces multilateral growthFollowing this, Tencent struck a strategic deal with the newly formed Tengyi Technology, granting them the authority to operate Tencent's advertising business within the transportation industry.

This evolution from a straightforward financial investment in 2015, through a privatization acquisition in 2020, to recent joint efforts in content, data exchange, and technology empowerment, illustrates Tencent's growing commitment to the automotive internet sectorThe increasing importance of Tengyi Technology within Tencent's automotive landscape highlights a broader strategic vision regarding the automotive industry.

What attracted Tencent to Yiche?

Before digging into this question, it is essential to understand the automotive internet landscape

This sector encompasses a wide array of activities, using content and internet technologies as its backboneIt focuses on providing valuable insights related to automobiles—spanning news, data, trends, market analysis, and consumer behaviorIts primary aim is to equip manufacturers, dealers, consumers, and other stakeholders with information that enables them to make informed decisionsAdditionally, by aggregating content, the automotive internet sector creates sales leads, offering commercial value to manufacturers and dealerships alike.

Think of the automotive internet sector as a vast "connector," which integrates a multitude of elements: people, vehicles, locations, data, and contentIt closely ties together upstream producers with downstream distributors and end consumers, revealing significant "connection" value across the automotive value chain.

Yiche is one of the oldest players in this field, having been established in 2000 and developing extensive content, user, and data assets over its 24-year history

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This wealth of resources allows Yiche to cover the complete automotive life cycle for users—from researching, selecting, purchasing, and using vehicles to trading and enjoying themAs a significant player in the vertical space, Yiche becomes a crucial piece of a larger puzzle when integrated into Tencent's vast automotive industry portfolio.

Next, we should examine Tencent's internet strategy, which revolves around two key concepts: connectivity and industrial internet.

The ethos of "connecting everything" represents Tencent's ultimate goalCentered on communication and social interaction, its platforms—WeChat and QQ—serve as connection hubs, forming an expansive ecosystem that links people with information, services, and each otherFurthermore, Tencent has developed an open platform model that illustrates its connectivity strategy clearlyIt functions on a foundational level established by QQ and WeChat, incorporates self-operated services like gaming, advertising, payments, and finance in the middle layer, and connects millions of developers, partners, and content creators to users in the upper layer

This approach, previously pursued independently, is now expanded through strategic partnerships that aim for mutual benefits.

Regarding the "industrial internet," Tencent views this concept as a deeper extension of its internet development modelWhile traditional Internet usage has connected individuals and forged consumer networks, the introduction of "Internet Plus" extends these connections to businesses, enhancing communication between enterprises and consumersThe industrial internet further broadens this connectivity across different industry players, facilitating a redirection of resources and operational models based on consumer needs for more effective supply-demand matchingRather than replacing existing industries, the industrial internet serves to upgrade and invigorate them, generating new momentum for growth.

In this context, Yiche's position within the automotive internet sector and its possessing key resources align perfectly with Tencent's connectivity and industrial internet strategies

Yiche clearly sees its strengths in consumer-driven content ecosystems, bringing together a wealth of information and services funneling into Tencent's cloud offerings.

On the content front, Yiche's integration into the Tencent ecosystem has allowed it to develop a thriving vertical dedicated to automotive contentAs Yiche's assets and resources leverage Tencent’s platforms, such as WeChat, Tencent Video, and more, it reaches billions of users effectively, enhancing its overall footprint significantly.

After establishing a robust automotive content ecosystem, Tencent is now poised to harness Yiche's upstream and downstream connectivity to empower other partnerships within its automotive landscapeBy exploring various transportation and mobility scenarios, Yiche serves as a critical tool for Tencent's efforts to fuse its industrial internet strategy with the automotive industry.

Will Yiche be empowered further post-ecosystem transformation?

Tencent's interest in Yiche traces back to an initial strategic investment in 2015, later leading to privatization and acquisition phases

This continuous evolution has seen the collaboration deepen from pilot projects to accelerated partnerships and eventually to an ecologically enhanced operational model.

As of now, Yiche has stepped beyond its traditional vertical and completed a diversification shiftObservationally, the newly established Tengyi Technology will focus on four major business segmentsYiche will continue its emphasis on the traditional vertical media track, while Chuangyi Media operates as a new media service provider, managing short video and live streaming enterprisesYiHui Intelligent is tasked with developing AI technology solutions tailored to the scene-of-use for automotive industry clients—an area currently devoid of direct competitionMoreover, the newly announced management of Tencent's advertising within the public transportation sector establishes a new foothold within Tencent's vast ecosystem.

More importantly, this reformation not only expands Tengyi Technology's business landscape but simultaneously deepens its operational capabilities

In the realm of traditional media, Tengyi Technology plans to intensify coordination with Tencent in three key areas: extending the ecosystem, focusing on user engagement, and enhancing the efficiency of the entire chain.

Firstly, Tencent will open all its resources to Tengyi Technology, which allows Yiche's content to reach Tencent's ecosystem users more effectivelySecondly, based on data insights and scenario integration, both firms will align customers and content through enhanced algorithms, thereby targeting purchasing user flows comprehensively—ultimately guiding their vehicle purchase decisionsFinally, Tengyi Technology is set to innovate analytically, equipping dealers with tools to better capture and convert customers.

New media ventures also represent a critical battleground for Tengyi Technology and Tencent.

A report released by QuestMobile titled "2024 Comprehensive Automotive Market Insight" highlights how automotive marketing strategies have become increasingly diversified

Traditional channels are now synergizing with emerging ones; automotive news platforms remain prominent in vehicle marketing, while new energy vehicle brands have increased their investments in social media avenues like WeChat and WeiboSimultaneously, short video and live-streaming channels are gaining unprecedented marketing tractionIn this arena, Chuangyi Media has crafted two flagship products: Yiche MCN and a live-streaming matrixYiche MCN stands dominantly in the automotive video space while offering clients a comprehensive solution—effectively integrating performance across the entire ecosystemConcurrently, the live-streaming matrix provides three mainstream offerings: official live streaming, influencer live streaming, and dealer live streaming, enabling partner clients to tap into the burgeoning traffic opportunities available via video platforms.

With the integration of AI technology and the acquisition of Tencent's advertising management in the transportation sector, Yiche's elevation to "Tengyi Technology" confirms its readiness for a broader eco-capacity