XPENG plans to launch an all-new EV brand in 2024, currently being developed under the project name “MONA”. The company will leverage the new brand to expand in the mass market segment of RMB 150,000 (US$20,600) price range and accelerate the adoption of Smart EV and technologies in this segment. Project MONA will accelerate XPENG’s production and sales growth and help achieve greater economies of scale.
An A-class Smart EV model will be launched in 2024 as the debut product of the company’s new brand. The new model and brand will be differentiated from XPENG-branded products and the main brand.
DiDi will provide support from its mobility ecosystem for the MONA project with access to its nationwide shared mobility market.
XPENG will issue Class A ordinary shares, representing approximately 3.25% of the Company's outstanding share capital upon completion of the issuance, to acquire assets related to DiDi’s Smart EV project.
DiDi will thereby become a strategic shareholder of XPENG, with a lock-up period of 24 months after the initial closing. Furthermore, the agreement between the Company and DiDi also establishes performance-based incentive mechanisms based on the mass production of MONA and sales volume targets to be fulfilled by Didi, subject to which DiDi will be entitled to receive share-based incentives.
According to the agreement, XPENG will become the first automotive manufacturing company with comprehensive support from the ecosystem of DiDi. Both parties will explore strategic cooperation in a number of areas, including marketing, financial and insurance services, charging, Robotaxi and international market expansion.
As a world’s leading mobility technology platform, DiDi shares XPENG’s vision of shaping the mobility experience of the future with technology. XPENG’s A-class Smart EV products under the new brand will not only significantly increase our scale, but also accelerate the adoption of our Smart EV technologies in the mass market segment, bringing our technologies to a much broader customer base.
Furthermore, both parties will explore cooperation opportunities in various areas. XPENG will continue to create value and capture growth opportunities in the mobility ecosystem as well as in autonomous driving.
—He Xiaopeng, Chairman and CEO of XPENG
DiDi Global Inc. is the world’s leading mobility technology platform. It offers a wide range of app-based services across Asia Pacific, Latin America and other global markets, including ride hailing, taxi hailing, chauffeur, hitch and other forms of shared mobility as well as auto solutions, food delivery, and intra-city freight services.