China's Didi To Sell Smart Auto Assets To State-Backed NavInfo's Unit

China's Didi Global is in advanced talks to sell its smart driving and cockpit assets to a unit of state-backed digital mapping firm NavInfo, as the ride-hailer focuses on its core business following a bruising regulatory crackdown, two sources said, Julie Zhu reported for Reuters.

China's largest ride-hailer expects to significantly pull back from the ultra-competitive electric vehicle (EV) market with the deal. I Photo: DiDi Facebook

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

China's largest ride-hailer expects to significantly pull back from the ultra-competitive electric vehicle (EV) market with the deal, which will value the assets at close to 500 million yuan ($70 million), according to two of the sources.

EV makers are competing fiercely in a consolidating Chinese market and are seeking new technologies such as smart cockpits and autonomous driving to attract consumers.

Didi sold its EV development business to Chinese EV maker Xpeng a year ago in a deal worth $744 million in exchange for a roughly 3.25% stake in the vehicle maker. That accounted for the bulk of its EV-related assets, according to the three sources.