Tesla’s rival, Chinese electric vehicle (EV) startup Xpeng, is acquiring Didi’s smart EV assets for $744 million. The acquisition comes on the heels of a $700 million investment agreement with Volkswagen to develop new cars and share strengths.
The Didi assets will be rebranded with the current running code name being described as “Mona” under Xpeng, The resulting new brand will have the goal of launching an A-class Smart EV vehicle in 2024. The collaboration also includes marketing, financial insurance services, charging, and international expansion.
“XPENG’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,” said He Xiaopeng, Chairman and CEO of XPENG.
DiDi provides a variety of app-based services in Asia Pacific, Latin America, and other global markets, their products include ride hailing, taxi hailing, chauffeuring, and other kinds of shared mobility. In the fiscal year ending March 2023, DiDi had 587 million active users.
“XPENG has established its leadership position in the Smart EV technologies and intelligent driving technologies. We will continue to deepen our cooperation with XPENG in multiple areas, driving transformation of the transportation and automotive industries,” said Cheng Wei, Chairman and CEO of DiDi.