NEVS-DiDi deal for EV production in China cancelled

NEVS-DiDi deal for EV production in China cancelled

According to recent reports coming out of Sweden, the electric-vehicle agreement between National Electric Vehicle Sweden (NEVS) and China’s DiDi Chuxing has fallen through, with DiDi withdrawing a massive order for NEVS electric cars.

The electric-vehicle deal was inked by SAAB successor NEVS and DiDi Chuxing -- commonly referred to as China’s Uber -- in 2017. Under the terms of the deal, the two companies were supposed to collaborate on the production of electric cars to be used by DiDi in its ride-sharing vehicle fleet.

The order of electric cars from DiDi was one of the biggest orders which NEVS has received till date for its electric vehicles (EVs). With DiDi already having 260,000 EVs in its fleet, to be deemed the ‘world’s largest EV fleet operator,’ the company’s deal with NEVS was a part of its plan to have 1 million EVs in its fleet by the decade-end.

To commence the production of its EVs in China, NEVS required an investment of $500 million. The mentioned investment was supposed to be secured by DiDi, in accordance with the agreement between the two companies.

Revealing that DiDi has backed out of the deal with NEVS which has stopped the production of EVs for the ride-sharing company, reports from Sweden have asserted that a better EV offer from Chinese automaker BAIC has prompted DiDi to pull out of its deal with NEVS.