Chinese electric vehicle (EV) startup Xpeng Motors has unveiled its strategic move to acquire Didi Global's smart electric vehicle development business in a substantial deal worth HK$5.84 billion (US$744 million). The acquisition will see Xpeng issue approximately 3.25% of its shares to Didi at HK$64.03 per share, thus forging a strong partnership and making Didi a significant shareholder in the company.
The collaboration between Xpeng and Didi is set to pave the way for the introduction of a new EV brand named “MONA” in 2024. This innovative venture, currently in its developmental phase, aims to cater to a wide range of consumers within the competitive price range of 150,000 RMB. The partnership also solidifies Xpeng's position as the first automotive manufacturing company to enjoy comprehensive support from Didi's extensive ecosystem.
The strategic alliance encompasses various key areas, including marketing, financial and insurance services, charging infrastructure, Robotaxi technology, and international market expansion. This comprehensive partnership reflects the shared vision of both companies in shaping the future of mobility through advanced technology.
He Xiaopeng, Chairman and CEO of Xpeng, expressed his enthusiasm for the collaboration, stating, “As a world-leading mobility technology platform, DiDi shares Xpeng's vision of shaping the mobility experience of the future with technology. 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.”
The collaboration between Xpeng and Didi is not entirely new. In 2020, the two companies established a strategic alliance through Xpeng's partnership with Xiaoju Car Service, a subsidiary of Didi that focuses on car rental and maintenance. The partnership resulted in the integration of charging networks and joint efforts in developing charging stations. Additionally, certain Xpeng Service Centers began offering Xiaoju's maintenance services.
In the midst of China's competitive EV landscape, Xpeng has taken strategic steps to solidify its position. In July, Volkswagen invested around $700 million in Xpeng, acquiring close to a 5% stake in the company. This investment was accompanied by a strategic agreement to collaboratively design two new EV models tailored specifically for the Chinese market.
The Xpeng-Didi partnership marks a significant milestone in the evolution of China's EV industry, showcasing the power of collaboration and innovation as key drivers of growth and competitiveness. With “MONA” on the horizon and a strengthened market position, Xpeng is poised to further influence the transformation of mobility and sustainable transportation in China and beyond.