DiDi Global Acquires Stake in AutoAi

BEIJING (Reuters) – Chinese ride-hailing giant DiDi Global will swap cash plus its smart driving and cockpit unit for 16.5% of AutoAi, a subsidiary of state-backed maps firm NavInfo, according to a stock exchange filing on Wednesday.

DiDi Smart Transportation Technology will comprise 87% of AutoAi’s strategy to increase its registered capital by 27.45 million yuan ($3.85 million), with NavInfo providing the remaining funds. The filing with the Shenzhen Stock Exchange indicates that DiDi will become the second-largest shareholder of AutoAi, which specializes in intelligent cockpit software and hardware, while NavInfo will hold the largest stake at 27%.

This agreement, which corroborates a prior report from Reuters, values the DiDi subsidiary at 450 million yuan.

DiDi anticipates that this transaction will enable it to significantly reduce its involvement in electric vehicle (EV) manufacturing, an area characterized by intense competition in a tightening market. Sources indicate that DiDi sold its EV development business, which included most of its EV-related assets, to Xpeng (NYSE:XPEV) in 2023 for $744 million, in exchange for a 3.25% stake in the automaker.

($1 = 7.1312 Chinese yuan renminbi)