By CHEN Xiaotong
Chinese EV startup Xpeng has acquired the automaking unit of ride-hailing giant Didi Chuxing for HK$5.8 billion (5.4 billion yuan, US$740 million).
With the merger, Didi has become a strategic shareholder of Xpeng, whose stock price surged 14 percent on Monday morning.
The two will found a new EV brand, currently named “MONA." Mass production will start next year with an expected price of around 150,000 yuan.
Xpeng’s acquisition of Didi's EV business also marks the end of the ride-hailer's foray into car manufacturing that began in April 2021. This move may be down to qualifications.
Didi is not the first cross-industry car manufacturer to face such a predicament. Previously, Baidu's car venture with Geely Automobile underwent a name change from Jidu to Jiyue, with Geely leading the brand. Baidu transitioned to a role providing intelligent driving technology.
Among all the tech companies that started EV business, Xiaomi is the only one that managed to secure qualification.
