BEIJING (AFP) – Chinese electric car giant XPeng said yesterday it would buy the EV subsidiary of ride-hailing platform Didi for more than USD740 million and launch a new brand of vehicles.
Founded in the southern province of Guangdong in 2015, XPeng is one of dozens of Chinese startups to emerge in recent years to take advantage of the boom in electric vehicles in the world’s largest auto market.
Didi is China’s leading car-hailing app but also operates a subsidiary designing electric vehicles. In a filing to the Hong Kong Stock Exchange – where XPeng is listed – the car giant said it had reached a deal with Didi to buy that subsidiary for USD744 million.
XPeng will also partner with Didi to launch a new brand of electric vehicles next year.
Markets welcomed the deal, which allows the Chinese manufacturer to eliminate a potential competitor and gain access to its advanced technology. XPeng shares gained almost 13 per cent yesterday morning.
