Didi Global to Sell Smart Driving Assets to NavInfo’s AutoAi in $70 Million Deal

China’s Didi Global is in advanced negotiations to sell its smart driving and cockpit assets to AutoAi, a unit of state-backed digital mapping firm NavInfo, according to sources close to the matter. This strategic move comes as Didi seeks to streamline its operations and focus on its core business following a challenging period marked by regulatory scrutiny.

The transaction, which is expected to be valued at approximately 500 million yuan ($70 million), will see Didi exchanging these assets for a stake in AutoAi. This deal marks a significant shift for Didi, as it plans to pull back from the intensely competitive electric vehicle (EV) market, where companies are fiercely vying for technological dominance.

Didi had previously invested heavily in the EV sector, including a notable deal last year where it sold its EV development business to Chinese EV maker Xpeng for $744 million in exchange for a 3.25% stake. However, the current deal with AutoAi suggests a strategic retreat from direct involvement in EV manufacturing.

AutoAi, which specializes in intelligent cockpit-related software and hardware, is expected to benefit from the integration of Didi’s assets, which are reportedly ready for mass production. The partnership could also pave the way for deeper collaboration between Didi, AutoAi, and NavInfo in areas such as ride-hailing and intelligent driving technologies.

As part of the deal, Didi plans to invest over 200 million yuan in AutoAi, making it the second-largest shareholder in the company. This move reflects Didi’s ongoing efforts to reposition itself in the market after facing significant challenges, including a regulatory crackdown that forced its delisting from the U.S. in 2022.