The JV aims to stop selling gas-driven car models by 2025
China’s DiDi Chuxing, a ride-sharing, artificial intelligence, and autonomous technology conglomerate, has announced its joint venture (JV) with a unit of state-owned BAIC called Beijing Electric Vehicle Co., to work on new energy vehicle and artificial intelligence projects.
According to DiDi, the JV dubbed as – BAIC-Xiaoju New Energy Auto Technology Co. Ltd, would develop next-generation connected-car systems. The deal pops up at a time when Chinese new energy vehicles (NEVs) market, is booming even as the country’s wider auto market cools. The first JV between China’s largest ride-hailing operator, Didi and state-owned BAIC intends to stop selling gas-driven car models by 2025 as China shifts the industry toward new energy vehicles.
As per China’s Association of Automobile Manufacturers, in 2018, car sales in China did hit reverse for the first time since the 1990s, while NEV sales were a bright spot, hiking 61.7 percent to 1.3 million units. Further, the industry body estimates China’s NEV sales to reach 1.6 million in 2019.
As DiDi said, there are already 400,000 NEVs registered on its platform through its partnerships with leading electric vehicle makers including BYD. Moreover, the company whose backers include Uber Technologies Inc, Apple Inc, and Japan’s SoftBank Group Corp, is reshuffling its domestic business as it expands globally with new services in South America and Australia.
DiDi launched in-app financial services across China
Lately, DiDi has launched a suite of financial products comprising crowd-funding and lending, with an aim to diversify outside the ride-hailing business. The move complements its intention to improve safety on its platform as well as operating efficiency.
As a whole, these added financial services would help DiDi build a stronger network of collaboration and shared interests and in turn, a tighter and more efficient transportation ecosystem.
Apart from that, DiDi rolled-out taxi-hailing service in Japan. The Didi’s Japan app links passengers up with drivers from 10 local taxi companies. Further, Didi informed it would use an AI-based dispatch and fleet management system for efficiency. In an overall, all it the recent moves by DiDi Chuxing indicate its vision to mark its presence globally.