German automaker BMW has forged a partnership with Chinese e-commerce giant Alibaba Group to establish a new innovation base located in Shanghai. The joint effort is aimed at fostering promising new Chinese tech startups in order to accelerate innovations in the automotive sector.

According to BMW, the two companies will be leverage their respective resources and strengths to support tech startups. The effort will mostly be focused on Chinese companies that are developing advanced technologies such as cloud computing, the internet of things (IoT), artificial intelligence, and autonomous driving.

BMW and Alibaba are aiming to provide support to at least 300 companies within the next three years. Apart from providing finances, the two companies will be offering tech startups consultations, technical training, and access to some of their technologies. At least 30 eligible startups will also be given access to office spaces.

BMW Group Region China president and chief executive officer, Jochen Goller, mentioned in a statement that the move to partner with Alibaba was necessary given the rapid transformation of the industry, which is being driven by technological innovations. By partnering with the country's innovation powerhouse, the two companies can help accelerate the transformation and evolution of the global automotive industry.

Alibaba vice-president, Ren Geng, echoed Goller's sentiment and added that the partnership to establish the innovation base underscores the willingness of global industry leaders to support new startups. The executive added that Alibaba hopes that its open ecosystem can help incubate new companies to foster their further growth.

China's contributions to the rapid transformation of the global automotive industry are mainly focused on digitalization, smart connectivity, autonomous driving, and artificial intelligence. Both companies will mainly be focusing on the further development of those technologies and the companies that are working on advancing their applications.

Several startups in China have already started to come up with innovative applications for advanced technologies. This includes integrating big data with vehicle technologies, advanced algorithms for autonomous driving, and cloud-based solutions for automotive applications.

BMW expressed its commitment to providing more opportunities for Chinese startups, which it believes will be a good investment in the long-term as they can also drive its future growth potential.  

The German automaker is one of the most active foreign automakers in forging cooperative partnerships with Chinese firms. Apart from Alibaba, BMW had also partnered with search engine giant Baidu, telecom company China Unicom, and maps firm NavInfo for various projects and initiatives.  Last year, the company also formed a partnership with Tencent to establish a new data-driven development platform.