HONG KONG China's car hailing giant Didi said it is selling its autonomous vehicle unit to electric car company Xpeng, forming a strategic partnership to launch a new car brand in 2024.

An A-class smart EV model will be launched in 2024 as the debut product of company's new brand MONA. This marks the first official partnership between the two companies.

To acquire assets related to Didi's smart EV project, Xpeng will issue class A shares representing about 3.25% of the company's outstanding share capital, Xpeng said.

(Reporting by Josh Ye; Editing by Kim Coghill)