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Alibaba to launch 'vending machine' for cars

Alibaba Group Holding Ltd. said Dec. 12 that it is opening two car test-drive centers in the Chinese cities of Shanghai and Nanjing, leading up to the launch of its "auto vending machine" in January 2018.

The vending machine concept for Alibaba's online shopping platform Tmall will feature cars stored in a multistory parking garage. Customers will be able to browse those vehicles on their smartphones and make a purchase within minutes, but can also go to a designated test-drive center to try out a car first.

The centers will be unmanned, with shoppers using facial recognition or a login code to gain access to their selected car model for a three-day test drive. The service features more than 100 models, with participating brands including Mercedes-Benz, BMW, Volvo and Audi.

Alibaba app users can sign up for a test drive if they have good credit scores on the company's Zhima Credit system and are also an accredited Alibaba Super Member. Users will only be allowed to try out a car model once, and will be limited to a total of five test drives during the first two months of the program.

The Chinese e-commerce giant first revealed plans for the auto vending machine in August, saying it wanted to "make buying cars as easy as buying a can of Coke."

It has also been testing online sales of cars in China for more than a year, with brands such as Maserati, Alfa Romeo and SAIC Motor Corp. Ltd. opening flagship stores on Tmall. In addition to purchasing car-related products, customers of the online stores can pay deposits on vehicles, but they must be picked up from a local dealership.

Alibaba also recently signed a deal with Ford Motor Co. to explore opportunities in automotive technology and retail.