Didi Global, the world’s largest ride-hailing business, sold its smart EV assets to Xpeng for almost $744 million on Monday in an effort to compete with Tesla’s hegemony. Together, DiDi Global and XPeng established a strategic partnership in which they will work to further the use of smart electric vehicles and technology on a global scale.
DiDi will sell some commercial assets associated with its smart EV development project to XPeng, which plans to introduce an A-class Smart EV in 2024 and is currently working on the “MONA” project.
The new model and brand will be distinguished from items with the XPENG logo and its primary brand.
The Chairman and CEO of XPENG, He Xiaopeng, stated that the company’s “A-class Smart EV products under the new brand will not only significantly increase our scale but also accelerate the adoption of our Smart EV technologies in the mass market segment, bringing our technologies to a much broader customer base.”
The strategic partnership will also encompass initiatives in marketing, charging, financial insurance, and global expansion.
“XPENG has solidified its position as a leader in smart EV and intelligent driving technology. In order to further the transformation of the transportation and automotive industries, we will continue to expand our collaboration with XPENG in a number of areas, said Cheng Wei, Chairman and CEO of DiDi.
In the Asia Pacific, Latin America, and other international regions, DiDi provides a vast array of app-based services, including ride hailing, taxi hailing, chauffeur, and other shared mobility options.
In the year that ended in March 2023, DiDi registered 587 million active users.
During the first quarter of this year, one in every seven automobiles sold was an electric vehicle, with China’s BYD dominating the market with a 21.1% share and Tesla coming in second with a 16% share.
According to Counterpoint Research, the US has overcome Germany to overtake China as the world’s second-largest EV market.
