Didi Invests $94 Million in Smart Cockpit Developer

By Liu Peilin, Qu Yunxu and Kelsey Cheng

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Didi’s smart transportation arm will become AutoAI’s second largest shareholder. Photo: VCG

Didi Global Inc. is investing 670 million yuan ($94 million) in an affiliated firm of digital mapping company NavInfo Co. Ltd. (002405.SZ) and has moved its team responsible for smart cockpit development to the venture, as the Chinese ride-hailing giant takes another step away from carmaking to streamline its business.

Beijing-based Didi’s smart transportation arm will take a 16.46% stake in AutoAI (Nanjing) Technologies Co. Ltd., becoming its second-largest shareholder, NavInfo said in a Shenzhen Stock Exchange filing dated Wednesday.

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Didi Global Inc. is investing 670 million yuan ($94 million) in AutoAI, gaining a 16.46% stake.
Approximately 300 employees from Didi's smart transportation division have joined AutoAI.
Didi’s carmaking ventures have posted significant losses; it sold part of its smart car business to XPeng Inc. and is now focusing on partnerships.

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Who’s Who

Didi Global Inc.: Didi Global Inc. is investing $94 million in AutoAI, a digital mapping affiliate of NavInfo, acquiring a 16.46% stake. Didi is shifting focus from carmaking to partnerships, having faced regulatory issues and delisting from the NYSE. The company sold part of its smart car business to XPeng Inc. and is preparing for a potential IPO in Hong Kong, reporting a 1.4-billion-yuan profit in the June quarter.

NavInfo Co. Ltd.: NavInfo Co. Ltd. (002405.SZ) is a digital mapping company and the largest shareholder of AutoAI (Nanjing) Technologies Co. Ltd. AutoAI, spun off by NavInfo in 2018, focuses on software and hardware solutions for connected vehicles. NavInfo recently invested an additional 100 million yuan in AutoAI, reducing its stake from 30.29% to 27.01%.

AutoAI (Nanjing) Technologies Co. Ltd.: AutoAI (Nanjing) Technologies Co. Ltd. is a spinoff of NavInfo, established in 2018. It develops software and hardware solutions for connected vehicles but has yet to turn a profit, recording losses of 326.8 million yuan in 2023 and 38.3 million yuan in the first half of 2024. Didi Global Inc. recently invested in the firm and moved its intelligent cockpit development team there.

BYD Co. Ltd.: BYD Co. Ltd. is a Chinese manufacturer that collaborated with Didi Global Inc. to develop the D1 electric vehicle model for ride-hailing purposes. The D1 was launched in November 2020, but its sales did not meet expectations.

XPeng Inc.: XPeng Inc. is an electric-vehicle (EV) maker that acquired part of Didi's smart car business for a 3.25% stake. Recently, XPeng unveiled the Mona M03, an electric hatchback coupe developed based on Didi's smart driving assets, aiming at the mass market with a starting price of 119,800 yuan.

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What Happened When

2017：: Didi began collaborating with car manufacturers to make EVs for ride-hailing.

November 2020：: Didi launched the D1 model, developed with BYD Co. Ltd.

2021：: Didi decided to develop its own new-energy vehicles.

2021：: Didi sold part of its smart car business to XPeng Inc. for a 3.25% stake in the latter.

2022：: Didi's carmaking business posted losses of 2.6 billion yuan.

First half of 2024：: AutoAI racked up losses of 38.3 million yuan.

By June 2024：: Didi reported a 1.4-billion-yuan profit in the June 2024 quarter.

Tuesday, August 27, 2024：: XPeng unveiled the Mona M03, an electric hatchback coupe developed based on Didi’s smart driving assets.

Wednesday, August 28, 2024：: NavInfo announced Didi’s smart transportation arm will take a 16.46% stake in AutoAI, becoming its second-largest shareholder.

AI generated, for reference only