"What we are creating is not 'internet in the car', but a 'car on the internet.' This is a significant milestone in the automobile industry. Smart operating systems become the second engine of cars, while data is the new fuel," Wang Jian, chairman of Alibaba's Technology Steering Committee, said.

Alibaba's new car also boast of a unique feature that allows drivers to book a parking space ahead, fill the gas tank, or grab a cup of coffee through the use of Alibaba's Alipay system.

"We believe in the future that 80 percent of the car's functionality won't be related to transportation," Jack Ma said at the event. "The car will become a kind of robot you communicate with on a daily basis."

Meanwhile, even though Alibaba's smartphone linked to a car is not new (as such platform has already been introduced by Google, Apple, and Baidu), experts said that there is a long way to go on the journey towards the commercialization of driverless cars. Fully autonomous cars are likely to arrive on the market by 2020 or later, Reuters reported.

The RX5 is available for pre-order now, with price starting at 148,800 yuan ($22,000). The delivery of the units is expected to start in August, according to Tech Crunch.