Danielson with Volvo said that Sensus is an important step for the company to achieve in automatic driving.

The system enables the car to be connected to different objects - not only people, but also other cars and infrastructure, he explained.

Shen Feng, vice-president for R&D at Volvo Cars China, said the company has the technology to enable the car read speed limit boards and remind the driver. The car can also be connected with traffic lights, parking lots and other vehicles, enabling fundamental changes in the traffic system, he said.

According to a forecast provided by Volvo, by 2015, 6.6 billion devices round the globe will be connected to each other and exchanging data over the Internet, including 62 million vehicles.

To tap the huge market, companies outside the auto industry are also investing heavily in the development of related products and services.

Google and Apple are known for their competition in the sector. Google recently unveiled Android Auto, a system that can connect smartphones with cars, directly competing with Apple's CarPlay.

At the end of last year, China's networking tech giant Huawei also made a foray in to the area by releasing a new in-car module that supports mobile Internet access.

Volvo's China export plans mark new phase in Geely strategy	Volvo Sensus to make life easy: Danielson