Chinese ride

China’s Didi will invest RMB 670 million ($94.3 million) in state-backed car tech firm AutoAi for a 16.46% stake, in a move that will also see the ride-hailer become leaner and more focused on its core business by selling off its smart cockpit division. The mobility giant will become the second-biggest shareholder of AutoAi, a company majority-controlled by state-backed digital mapping provider NavInfo, alongside other smaller investors such as Taiwanese chipmaker MediaTek, Chinese gaming giant Tencent, and German parts supplier Bosch. That’s according to a regulatory filing released by Shenzhen-listed NavInfo on Wednesday, when the company also announced a further investment of RMB 100 million into its subsidiary.

A team of 300 or so employees, previously responsible for developing in-car digital infotainment systems for Didi’s electric vehicle business, has been incorporated into AutoAi, people close to the deal told Chinese media Caixin. Didi said in a statement that it has been an investor in AutoAi since 2018 and will ramp up its development efforts in the transition to smart mobility. The news comes after Didi sold its EV development assets to Chinese EV maker Xpeng Motors in an all-stock transaction valued at $744 million for a 3.25% stake in Xpeng last August, TechNode reported. Didi reported a net profit of RMB 1.4 billion for the three months ended June 30, compared with the net losses of RMB 267 million and RMB 1.4 billion it booked a year ago and a quarter earlier, respectively. [Caixin, NavInfo filing, in Chinese]