Zhejiang Geely Holding Group, which owns Volvo Cars, signed an agreement on Tuesday with Tencent to develop smart onboard functions.

The two will develop smart car functions including infotainment as well as mobility service applications, and explore autonomous driving, Geely said in a statement.

The deal with Tencent is the latest of partnerships the carmaker has inked with companies in the tech sector.

Earlier this month, Geely partnered with Baidu to build a standalone carmaker, which will use Geely's dedicated EV platform.

In the same month, Geely inked a deal with Apple maker Foxconn. The two would like to establish a joint venture that provides contract manufacturing for other automakers.

"The current global automotive industry is undergoing profound changes. We must actively embrace change, build alliances, and synergize global resources to create greater value for our end users," said Geely CEO Daniel Donghui Li.

One of the leading carmakers in China, Geely sold 2.1 million passenger and commercial vehicles in 2020.