XPeng's Acquisition of Rival Subsidiary Exceeds $740M

Home > Industry Analysis > Content

【Summary】Chinese EV startup XPeng plans to spend over $740 million to acquire the electric vehicle division of ride-hailing service Didi and launch a new brand of vehicles. The deal allows XPeng to eliminate a potential competitor and access advanced technology. XPeng shares rose nearly 13% following the announcement. China aims to have the majority of car sales be electric and hybrid by 2035.

FutureCar Staff Aug 28, 2023 9:18 AM PT

XPeng's Acquisition of Rival Subsidiary Exceeds $740M

Chinese electric car company XPeng has announced its plan to acquire the electric vehicle (EV) division of ride-hailing service Didi and launch a new brand of vehicles. The company will spend over $740 million on this venture. XPeng, founded in Guangdong province in 2015, is one of many Chinese startups taking advantage of the growing electric vehicle market in China, the world's largest auto market.

Didi, China's leading car-hailing app, operates a subsidiary that designs electric vehicles. XPeng has reached a deal with Didi to purchase this subsidiary for $744 million. Additionally, XPeng will collaborate with Didi to introduce a new brand of electric vehicles in the coming year.

The market has responded positively to this deal, as it allows XPeng to eliminate a potential competitor and gain access to advanced technology. XPeng shares rose by almost 13% on Monday morning. XPeng, which also sells its products in Europe, has approximately 14,400 employees and offices in Silicon Valley and Amsterdam.

In the first half of 2023, XPeng sold 41,435 vehicles, a decrease of 40% compared to the previous year, according to recently published results. China, the world's largest emitter of greenhouse gases, aims to have the majority of car sales be electric and hybrid by 2035. Generous purchase subsidies have fueled the growth of electric vehicles in recent years, with companies like BYD, Nio, and XPeng leading the way.