Features
14 fév 19

DiDi + BAIC: Intensified electrification

China’s policy to transition from combustion engine to electric has generated an important shift in automotive manufacturing and mobility services. The entire EV supply chain, from battery production to in-vehicle technology, is working double shifts to support electrification and enable on-demand user tools. The Chinese consumer might still be eager to own a vehicle, limitations on license plate availability are making sure that this will be an EV or, even better, mobility solutions making the car redundant.

Joint ventures

Typical for China are corporate partnerships rather than in-house tech developments. It’s common practice for automakers to join forces with any tech specialist that can help them accelerate the execution of their vision. Due to local regulations, foreign companies were forced into JVs with Chinese companies; this delivered access to the Chinese market, but in parallel, helped the local JV partner improve technology, quality and design.

Recently however, most of the JVs are between the bigger players in car manufacturing and the mobility services industry; the Chinese believe that most growth potential can be found in services for consumers who want to upgrade from public transport, but won’t have access to a private vehicle.

Jingju

A good example is Jingju, which is a JV between BAIC, one of the largest Chinese automakers, and Xiaoju New Energy Auto Technology Co. Ltd. Both joined forces to develop new energy fleet operations and next-gen connected car systems.

This JV has now started a partnership with DiDi. The Chinese ride-hailer however is betting on all horses, e.g. EV manufacturer BYD, within a structure called “DiDi Auto Alliance”. Currently, DiDi owns the world’s largest new energy vehicle network, managing in excess of 400,000 units.

New ecosystem

Xiaoju Automobile Solutions or ”XAS” is the name of DiDi’s car owner/driver platform that contains all operational services going from finance, leasing, trading, charging to maintenance of DiDi EVs. It is essentially an operating system that allows anyone to join the DiDi open car-sharing program and benefit from DiDi’s scale

Regardless of the complexity of intertwining relationships, DiDi has managed to create an operating system, capable of creating a true mobility ecosystem.

Authored by: Yves Helven