XPeng expected to rise after the takeover of Didi’s electricity subsidiary – 08/28/2023 at 14:40

(AOF) – XPeng is expected to rise more than 5% in pre-market on Wall Street after the announcement by the Chinese manufacturer of electric vehicles of the acquisition of the electric division of the Didi group in the framework of a transaction that could reach $744 million. This takeover would allow it to supply vehicles to the carpooling giant, increase its production and reduce its costs. The agreement with Didi foresees that Xpeng will launch an A-class model under a new brand next year, under a project called Mona.

Pricing will be in the 150,000 yuan ($20,000) bracket, while Xpeng’s current offerings are mostly priced above 200,000 yuan.


A paradoxical performance

Data from EY highlights that the performance of the world’s top 16 manufacturers was particularly strong in 2021. While the average margin has fallen for three years in a row, from 6.3% in 2017 to just 3.5% in 2020 , this margin stood at 8.5% in 2021. This level is a record for ten years. However, the context was particularly hectic for manufacturers, faced with unprecedented shortages of components. Global sales fell 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure. .

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