Beijing (ZXZC)- Chinese smart electric vehicle startup XPeng and global ride-share giant DiDi jointly announced today a strategic partnership aimed at maximizing their respective strengths to propel the mass adoption of smart electric vehicles and related technologies. 

Photo credit: DiDi

As part of this initiative, XPeng will enter a multi-brand strategy phase, bolstering its technological edge in the A-segment vehicle market and making intelligent driving technology a standard feature in the mainstream submarket, contributing to the new era of electric intelligence.

At the heart of this collaboration is an A-segment smart electric vehicle, codenamed "MONA," which will debut as XPeng's flagship product under its new brand. Production of the model is slated to commence in 2024. 

Diverging from XPeng's existing brand lineup, the new model will receive comprehensive support from DiDi's ecosystem, encompassing intelligent cabin features, intelligent driving, and shared mobility offerings. This collaboration will facilitate XPeng's endeavor to create a breakout model within the 150,000-yuan price range and expedite the global application and adoption of automated assisted driving and intelligent cabin technologies.

To establish a mutually beneficial long-term partnership, XPeng will issue Class A ordinary shares accounting for 3.25% of its total post-transaction share capital, acquiring assets and research capabilities associated with DiDi's intelligent electric vehicle project. DiDi will become a strategic shareholder of XPeng, with a lock-up period of 24 months for the initial shares.

Both entities are set to explore long-term mutually beneficial opportunities across various domains, including XPeng's vehicle operations on DiDi's platform, brand marketing, financial insurance services, charging infrastructure development, Robotaxi deployment, and collaboration in international markets.