The Chinese manufacturer of electric cars XPeng, one of Tesla’s rivals in China, announced on Monday the acquisition for about 700 million euros of the electric subsidiary of the “Chinese Uber” and the launch of a new brand of vehicles.
Didi, Chinese VTC Champion
Founded in 2015 in Guangzhou, southern China, XPeng is one of dozens of bold startups that have sprung up in recent years in the country to take advantage of the rise of electric vehicles in the world’s largest car market.
Didi is China’s chauffeured car booking (VTC) champion. In addition to this activity, which represents its main business, the group has a subsidiary for the design of electric vehicles.
XPeng has reached an agreement with Didi to buy it back for 744 million dollars (688.2 million euros), the manufacturer said in a statement on the Hong Kong Stock Exchange, where it is listed. XPeng will also partner with Didi to launch a new electric vehicle brand called “MONA” at this stage next year.
Xpeng shares rise 13%
This agreement, which allows the Chinese manufacturer to eliminate a potential competitor and gain access to its advanced technology, was well received by the markets. XPeng shares gained nearly 13% on the Hong Kong Stock Exchange on Monday morning.
The brand, which markets its vehicles in various European countries, employs around 14,400 people and has offices in Silicon Valley and Amsterdam (Netherlands).
XPeng sold a total of 41,435 vehicles in China and around the world in the first half of the year, down 40% year-on-year, according to results released in mid-August.
National objective of transition to electric mobility
China, the world’s biggest producer of greenhouse gases in absolute terms, aims to sell cars by 2035, mostly electric and hybrid.
Many innovative local manufacturers (BYD, SAIC-GM-Wuling, Geely, Nio…) are supporting this transition in the world’s leading car market, thanks to generous purchase subsidies that have allowed sales to take off in recent years.
Source: BFM TV
