Electric Vehicles

Didi EV Joint Venture With Li Auto Files For Bankruptcy

 

Chinese ride-hailing firm Didi’s joint EV venture with Li Auto has filed for bankruptcy, bringing a four-year partnership to an end.

The company, Beijing Judian Chuxing Technology, which was 51% owned by Didi while 49% was held by Li Auto, submitted the bankruptcy application to a Beijing court on Thursday.

Didi and Li Auto did not immediately respond to requests for comment.  

 

Also on AF: HSBC Accused of Overstating Risks of Asia Unit Break-Off

 

Didi and Li Auto, previously known as Chehejia, established the EV venture in 2018 to develop and manufacture customised smart electric vehicles for ride-hailing services.

It was also among a series of partnerships Didi struck with major automakers including Volkswagen, Toyota and BYD with plans to adopt more EVs with autonomous driving technologies in its fleets.

While Didi and BYD launched a co-developed EV model D1 in 2020, most of the collaborations have made little progress.

Scrutiny from Beijing for suspected violation of data security has forced Didi to de-list from the New York Stock Exchange and reined in its business since last July.

However, the ride-hailing firm has quietly pushed ahead with a car-making project, code-named “Da Vinci,” Reuters reported in June.

It was also in advanced talks with state-backed Sinomach Automobile to buy a third of its electric-vehicle unit, Reuters reported then.   

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

China Tech Firms Fear Didi $1.2bn Fine Sign of More to Come

Didi Seen in Talks For Stake in China EV Maker Sinomach

Didi Shareholders Vote to Delist from New York Stock Exchange

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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