Exclusive-China’s Didi in talks to sell smart car assets to state-backed NavInfo unit, sources say By Reuters

By Julie Zhu

HONG KONG (Reuters) – China’s Didi Global is in advanced talks to sell its smart driving and cockpit assets to the unit of state-backed digital mapping company NavInfo, as the carrier focuses on its core business after a crackdown by strong regulation, two sources said. .

Didi plans to sell the assets to AutoAi, a provider of software and hardware related to smart cabs, in exchange for a stake in AutoAi, the two sources and another person with knowledge of the matter said.

China’s largest carrier expects to significantly retreat from the ultra-competitive electric vehicle market through the deal, which will value assets at nearly 500 million yuan ($70 million), two of the people said.

Electric vehicle (EV) makers are competing fiercely in a consolidating Chinese market and are looking to new technologies such as smart cockpits and autonomous driving to attract consumers.

Didi sold its electric vehicle development business to Chinese electric vehicle maker Xpeng (NYSE: actions of the vehicle manufacturer. This represented the bulk of its assets related to electric vehicles, the three sources said.

The deal with AutoAi could be announced in the coming days, they said, declining to be identified because the information is private.

Didi, NavInfo and AutoAi did not respond to requests for comment.