Tencent Holdings has developed its own autonomous driving system, according to people familiar with the matter, becoming the latest technology player to dive into a crowded field that could become a $42 billion industry. The social media giant intends to leverage its mapping and artificial intelligence technology to compete in a sector that's attracted investment from the likes of Alphabet Inc.'s Waymo as well as local rivals Baidu Inc. and Alphabet Inc., the people said, requesting not to be named because the matter is private. It's unclear how far the development effort has advanced though Tencent has a prototype and begun testing the system internally, the people said.

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