Global EV Giant Meets Uncertainty Amid Planned Acquisition of Chinese Startup

A statement released by Xiaopeng, a leading global electric vehicle (EV) manufacturer, announced the formation of an independent special committee of the board to evaluate a non-binding proposal for private IPO in May 2025. The announcement was made as Xiaopeng's parent company, GAC Group, has previously expressed interest in acquiring the entire shares of the Chinese EV startup.

As part of its strategic plan, XAGroup (formerly known as the GAC Motor Corporation) announced it plans to acquire all outstanding shares of Xiaopeng. With a stake of around 65.7% in Xiaopeng currently held by GAC Group, the acquisition would lead to complete merger of the two companies once the deal is completed.

The move aims to promote deeper resource integration and efficient collaborative work within XAGroup's vast network, eliminate redundant investments, reduce costs, and enhance its competitive position. Post-merger in a new management structure, each brand will maintain uniqueness, distinct technical planning, product combination to cater uniquely for diverse user segments and provide exclusive consumption experience.

In a recent public statement by GAC Group’s chairman Li Shufu, said: “Facing increasingly intense market competition and a more complex economic environment, we need continuous assessment based on the spirit of the Taizhou Declaration and strive to push forward integration of our automotive businesses with the purpose of returning to the 'One GAC', to leverage technical advantages for increased innovation ability, profitability as well as creating lasting value while pushing forward toward becoming a leading global smart electric vehicle group. We will maintain close communication and cooperation with market capitals in America and internationally as well.”

However, the company has not yet made any decision on the private IPO proposal or possibly other strategic alternatives from its management team.