Business

Didi, Volkswagen Set Up JV In China

Didi Chuxing's new joint venture with Volkswagen China is set to come online in the coming months.

According to Didi, the two parties will coordinate their respective strengths in products, marketing, brand building, and data technology to provide Chinese users with safer and more efficient transportation services. As long-term strategic partners, they will also combine their innovative resources to work towards an "Internet Plus" strategy and promote the development of smart city transportation system.

The new joint venture aims to create a smart ride-hailing platform. Jochem Heizmann, chief executive officer of Volkswagen China, said Volkswagen will be the OEM and vehicle provider in the JV. Heizmann also revealed that Volkswagen will provide a large number of new energy cars for the cooperation.

Helped by this new deal with Didi, Volkswagen will realize production and sales of 400,000 new energy cars in 2020 and it aims at 1.5 million in 2025. Volkswagen believes that in the future, the major growth power of new energy cars is from ride sharing, Internet-hailing car services, and corporate and government fleets.

Cheng Wei, founder and chief executive officer of Didi Chuxing, said that with the long-term strategic cooperation between Didi and Volkswagen China, they will integrated each other's advantages to meet the diversified transportation demands of Chinese people. Meanwhile, they will be able to contribute to solve the traffic, environment, and employment challenges in China.

Full financial details of the JV, including capitalization levels and ownership splits, was not immediately made available.

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