XPENG buys Didi’s smart EV assets for $744 million
XPENG, a Chinese electric car startup, has purchased Didi’s smart EV assets for $744 million. It marks yet another critical partnership established by the Tesla contender in recent weeks.
Didi announced on Monday that the two are establishing a strategic alliance to encourage the global use of intelligent electric vehicles and services. Notably, the Didi assets will be rebranded as “Mona” under XPENG, which is planned to open in 2024. The collaboration also includes marketing, financial protection services, recharging, and international expansion.
The announcement came on the same day as Volkswagen’s $700 million investment in XPENG, which would result in the construction of two new Volkswagen vehicles using XPeng’s main ADAS technology.
Despite significant R&D investment, XPENG’s EV adoption remains fairly limited, accounting for only 2.1% of China’s new energy vehicle industry. Furthermore, Didi’s impact extends outside China, thanks to its 2018 purchase of Brazilian transport startup 99, which boosted it throughout Latin America.
Didi, like Uber, has built relationships with major automakers. This included an agreement with Volvo to deliver autonomous vehicle technology to operate the company’s robo-taxi fleets. Didi has given up a piece of its vehicle-making dream by selling its smart car company.
The only outstanding question is whether Didi and XPeng will collaborate in the field of self-driving cars. XPENG has a significant AV team and has been the most competitive EV player in China regarding software development spending. And, given the recent loss of its AV chief, there is no hint of a downturn in any business sector. So we should expect exciting news from them in the coming future.
