E-commerce giant JD joining China's heated EV fray

Chinese e-commerce giant JD is to install its voice recognition and onboard payment tools into startup Enovate's electric vehicles, making inroads into the already competitive electric car market.

This is part of a deal the two signed on Friday, which saw JD become the latest Chinese internet company to join the gold rush of smart electrification that is changing the auto industry.

Enovate said the two will also work in terms of digital marketing to help the startup get established as soon as possible.

"We will share resources in a number of aspects ranging from branding and products to users and channels," said Yu Songyao, a senior Enovate executive.

Analysts say establishing a partnership with big internet companies is crucial when chances to stand out are becoming slim for lesser-known startups.

First-movers such as Tesla and Nio are getting a firmer footing, and traditional carmakers including Volkswagen are rolling out their electric cars, so the window for latecomers are closing rapidly.

Statistics show that Nio sold 20,060 vehicles in first three months this year, soaring 422.7 percent year-on-year. Volkswagen said it expects to sell 100,000 electric cars in China this year.

Late last month, Nezha, another lesser-known electric car startup, announced a partnership with China's internet security company Qihoo 360.

The company would become its second largest shareholder by leading Nezha's 3 billion yuan ($467 million) Series D fundraising effort.

Internet security is becoming an issue as vehicles become smarter and 360 Security is looking to this investment to open up a platform for its products in smart cars, according to analysts.

Nezha CEO Zhang Yong said Qihoo 360 will offer the startup its technical help and facilitate its financing.

"For us, the top task now is to survive," said Zhang.

Established in 2014, Nezha has sold over 35,000 of its two car models. The firm's first-quarter sales increased fivefold to more than 7,400.