The collaboration entails the introduction of a fresh EV brand, set to debut in 2024.
XPENG Inc., a leading Chinese smart electric vehicle company, announced a new partnership with ride-hailing giant DiDi Global Inc. to accelerate the adoption of smart electrical vehicles (EVs) and technologies.
The primary goal of this alliance is the forthcoming introduction of a fresh EV brand by XPENG in 2024, presently labeled as project “MONA”. This endeavor seeks to tap into the mass market, especially in the RMB150,000 (approx US$20,630) price bracket. The ambition is to cater to this vast segment, thereby promoting the wider acceptance of smart EVs and affiliated technologies. The “MONA” project is poised to amplify XPENG’s manufacturing and sales metrics, delivering enhanced economic efficiencies.
To spearhead this brand, a premier A-class Smart EV model will be unveiled in 2024. This product, alongside the new brand, is expected to be distinctive from the existing offerings by XPENG. Contributing to the “MONA” project, DiDi commits to furnishing support via its extensive shared mobility market network. This collaboration is expected to enable XPENG to engineer sought-after Smart EV models for the mass market, particularly within the aforementioned price range.
XPENG intends to acquire assets related to DiDi’s smart EV project by giving Class A ordinary shares of XPENG. These shares will represent about 3.25 percent of XPENG’s total outstanding shares after the deal is done. As a result, DiDi will become a strategic shareholder of the company and have a lock-up period of 24 months after the initial closing. In addition, the pact sets forth certain incentive structures grounded in the successful mass production and sales targets of “MONA”. DiDi stands to gain share-based incentives contingent on these benchmarks.
Pioneering automotive and mobility synergy
As per the agreement, XPENG is set to become the first car manufacturer to receive extensive backing from DiDi’s ecosystem. They anticipate delving into multiple strategic tie-ups, spanning from marketing and finance to aspects like charging stations, autonomous taxi services and even global market outreach.
Mr. He Xiaopeng, XPENG’s Chairman and CEO, expressed that both companies share a mutual vision of harnessing technology to redefine future mobility experiences. He underscored the potential of the new A-class Smart EV products to broaden XPENG’s reach and expedite the assimilation of their smart technologies across a wider customer spectrum.
In echoing sentiments, Mr. Cheng Wei, DiDi’s Chairman and CEO, emphasized the shared commitment of both companies towards innovating the realms of shared, electric and intelligent mobility, envisioning a transformative shift in the transportation and automotive sectors.
With a vision geared toward tech-savvy middle-class patrons, XPENG is steadfast in its commitment to reshaping the vehicular sector with cutting-edge technology and refined mobility experiences. Their technological suite encompasses a proprietary advanced driver-assistance system, an in-vehicle intelligent OS and a state-of-the-art powertrain, among others.
Further consolidating its footprint, XPENG recently inked two pivotal deals aimed at cementing its stature in China’s electric vehicular market: the aforementioned with DiDi, and a groundbreaking collaboration with Volkswagen to conceive two electric vehicles under the VW emblem, slated for a 2026 launch.
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