XPENG Inc., a prominent Chinese Smart EV company, has revealed its intent to speed up the introduction of Smart Electric Vehicles (EVs) through a key collaboration with the global mobility technology platform DiDi Global Inc.
Why It Matters
This strategic alliance represents a significant push towards the mainstream adoption of Smart EV technologies. XPENG’s new initiative, codenamed “MONA”, is set to capitalize on the substantial market opportunity within the RMB150,000 price segment. With DiDi’s support, XPENG aims to introduce innovative EV models that cater to a broader audience.
Key Points
- XPENG is preparing to unveil an A-class Smart EV model in 2024 under a fresh brand currently being conceptualized as “MONA”.
- The new model and brand will distinguish itself from the conventional XPENG-branded products.
- DiDi will offer its comprehensive mobility ecosystem support to the “MONA” project as part of the collaboration, granting access to its expansive shared mobility market in China.
- XPENG will release Class A ordinary shares, constituting about 3.25% of its outstanding share capital once issued, to obtain assets associated with DiDi’s Smart EV endeavor.
- DiDi will transition into a strategic shareholder in XPENG, with shares locked for 24 months post the initial closing. The alliance also introduces performance-driven incentives rooted in the production of “MONA” and sales volume goals for DiDi.
Bottom Line
The partnership between XPENG and DiDi signifies a transformative phase for the Smart EV industry, combining the strengths of two industry leaders. While XPENG aims to solidify its presence in the Smart EV market, DiDi’s commitment towards shared and intelligent mobility is further reaffirmed. As stated by the CEOs of both firms, this collaboration will potentially revolutionize the transportation and automotive sectors, enhancing the mobility experience of the future.
