The Faraday Future FFZERO1 concept car, co-developed with LeEco Holdings Co Ltd, on display at the CES 2016 Consumer Electronics Show in Las Vegas, the United States, in January 2016. [Photo/Agencies]

Beijing-based LeEco Holdings Co Ltd is among the technology firms that are keen to challenge traditional vehicle manufacturers. The company announced in mid-February that it will set up a joint venture with Aston Martin to develop the British luxury car brand's first electric vehicle.

Jia Yueting, founder and chairman of LeEco, said that his company will not just sell cars but provide value-added services to buyers.

Ding Lei, head of LeEco' car development arm, said it is building an operating system that can be installed in cars in the future.

"We are creating cars connected to the Internet so we can provide more services to drivers and passengers... Cars will become the next platform after smartphones that people use to interact with the world," Ding said.

Internet companies such as Alibaba Group Holding Ltd and Tencent Holdings Ltd have also partnered with Chinese automobile makers to develop automotive expertise in an effort to broaden their reach beyond smartphones and computers.

Cars are rapidly becoming one of the key parts of the so-called Internet of Things－the network of inter-connected computers, gadgets, appliances, furniture, machines and vehicles.