Tesla’s China rival Xpeng buys ride hailing giant Didi’s smart EV assets for $744M

Tesla’s China rival Xpeng buys ride hailing giant Didi’s smart EV assets for $744M

Chinese language electrical car upstart Xpeng is buying the sensible EV belongings of trip hailing big Didi for $744 million, marking one other vital alliance that the Tesla challenger has struck in current months.

In an announcement on Monday, Didi stated the duo is forming a strategic partnership to “promote the worldwide utility of sensible electrical autos and applied sciences.”

Notably, the Didi belongings will grow to be a brand new sub-brand known as “Mona” below Xpeng, which is scheduled to launch in 2024. The partnership additionally extends to areas together with advertising and marketing, monetary insurance coverage providers, charging and worldwide growth.

The information adopted on the heels of Volkswagen’s $700 million funding in Xpeng which might see the manufacturing of two new fashions below the Volkswagen model using XPeng’s key ADAS applied sciences.

Xpeng’s mass market ambitions

Regardless of spending closely on R&D, Xpeng’s EV adoption stays fairly restricted, making up simply 2.1% of China’s new vitality car market (together with hybrids) in 2022. A partnership with Didi may probably assist it faucet a whole lot of thousands and thousands of customers in China.

For the 12 months ended Q1 2023, Didi recorded 587 million lively customers. Think about that these passengers, when selecting their trip on the Didi platform, see Xpeng’s Mona mannequin served up as a most popular choice sooner or later. Didi’s footprint reaches past China with its acquisition of the Brazilian rideshare firm 99 again in 2018, which has given it a lift in Latin America.

Certainly, Xpeng acknowledges in its submitting with Hong Kong’s securities authority that the partnership “will enhance the Firm [Xpeng]’s model publicity and buyer attain by means of the Vendor’s platform, which is able to in flip end in extra enterprise leads and unfold enterprise alternatives for the Firm in new worldwide markets.”

Extra to come back — it is a growing story…


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