XPeng Inc., a Chinese electric vehicle (EV) company, announced its strategy to accelerate the adoption of Smart EVs and technologies through a strategic partnership with DiDi Global Inc. (DiDi), a mobility technology platform.
The company plans to launch an all-new EV brand in 2024, currently being developed under the project name MONA. The company will leverage the new brand to expand in the mass market segment of the US$20,600 price range and accelerate the adoption of Smart EV and technologies in this segment. Xpeng believes that project MONA will accelerate the company’s production and sales growth and help achieve greater economies of scale.
An A-class Smart EV model will be launched in 2024 as the debut product of the company’s new brand. The new model and brand will be differentiated from XPeng-branded products and the main brand. DiDi will provide support from its mobility ecosystem for the MONA project with access to its nationwide shared mobility market.
XPeng will issue Class A ordinary shares of the company, representing approximately 3.25% of the company’s outstanding share capital upon completion of the issuance, to acquire assets related to DiDi’s Smart EV project. DiDi will thereby become a strategic shareholder of the company, with a lock-up period of 24 months after the initial closing. Furthermore, the agreement between XPeng and DiDi also establishes performance-based incentive mechanisms based on the mass production of MONA and sales volume targets to be fulfilled by Didi, subject to which DiDi will be entitled to receive share-based incentives.
According to the agreement, XPeng will become the first automotive manufacturing company with comprehensive support from DiDi’ ecosystem. Both parties will explore strategic cooperation in a number of areas, including marketing, financial and insurance services, charging, Robotaxi, and international market expansion.
“As a mobility technology platform, DiDi shares XPeng’s vision of shaping the mobility experience of the future with technology. XPeng’s Smart EV products under the new brand will not only significantly increase our scale, but also accelerate the adoption of our Smart EV technologies in the mass market segment, bringing our technologies to a much broader customer base,” said Mr. He Xiaopeng, chair and chief executive officer (CEO) of XPeng. “Furthermore, both parties will explore cooperation opportunities in various areas. XPeng will continue to create value and capture growth opportunities in the mobility ecosystem as well as in autonomous driving.”
“DiDi has been dedicated to promoting shared, electric, and smart mobility,” said Cheng Wei, chair and CEO of DiDi. “XPeng has established its leadership position in the Smart EV technologies and intelligent driving technologies. We will continue to deepen our cooperation with XPeng in multiple areas, driving transformation of the transportation and automotive industries.”
