Tesla’s rival Xpeng acquires the smart electric vehicle assets of Chinese giant DiDi for $744 million

Beijing, August 28: In a bid to challenge Tesla’s dominance, ride-hailing giant Didi Global on Monday sold its smart electric vehicle assets to electric vehicle company Xpeng for nearly $744 million.

DiDi Global and XPeng have jointly announced a strategic cooperation in which the two will cooperate to promote the global application of intelligent electric vehicles and technologies.

DiDi will sell some business assets related to its smart electric vehicle development project to XPeng, which aims to launch a class A smart EV model in 2024, which is currently being developed under the project name “MONA”.

The new model and brand will be distinguished from the XPENG branded products and its main brand.

“XPENG’s Class A smart products under the new brand will not only significantly increase our volume, but will also accelerate the adoption of our Smart EV technologies in the mass market segment, bringing our technologies to a much broader customer base,” said He Xiaopeng. Chairman and CEO of XPENG Corporation.

The strategic cooperation will also extend to areas such as marketing, financial insurance services, fees and international expansion.

“XPENG has established its leading position in intelligent electric vehicle technologies and intelligent driving technologies. We will continue to deepen our cooperation with XPENG in multiple fields, driving the transformation of the transportation and automobile industries,” said Cheng Wei, Chairman and CEO of DiDi.

DiDi offers a wide range of app-based services across Asia Pacific, Latin America, and other global markets, including ride-hailing, taxi, chauffeur, and other forms of shared mobility.

DiDi recorded 587 million active users in the 12 months ending March 2023.

One out of every seven cars sold during the first quarter of this year was an electric car, and it was dominated by the Chinese company BYD with a market share of 21.1 percent, while Tesla came in second with a share of 16 percent.

The United States has overtaken Germany to become the second largest market for electric vehicles in the world, while China remains the leader, according to Counterpoint Research.

–Iance

Not available/xk