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

By Julie Zhu

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

Didi plans to sell the assets to AutoAi, a provider of intelligent cockpits-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 pull back significantly from the ultra-competitive electric vehicle market with the deal, which will value the assets at close to 500 million yuan ($70 million), said two of the people.

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

Didi sold its EV development business to Chinese EV maker Xpeng (NYSE:) 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, said the three sources.

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

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