Didi sells smart car arm to Xpeng in retreat from EV industry

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The US$744 million partnership plans to introduce a new sub-US$20,000 EV brand to the masses.

The deal ends Didi’s involvement in the car-making business, once considered a growth driver for the car-hailing company.

As part of the deal, Xpeng plans to launch a new EV brand in partnership with Didi in 2024. Dubbed Project “MONA,” the cars will target the mass market segment with a price tag of around 150,000 yuan — or about US$20,000. For Didi, the deal marks a retreat from the car-making business, once considered a potential driver of growth for the car-hailing company.

Didi, once feted as the national champion that pushed Uber Technologies Inc out of the country, was driven off New York’s main bourse after Chinese regulators launched investigations into the security of its data. The company is gradually resuming its car-hailing expansion.

 

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