Chinese EV startup Xpeng said on Monday that it has inked a deal with Didi to purchase the car-hailing giant's smart vehicle unit.

Xpeng said it will issue class A shares representing about 3.25 percent of the company's outstanding share capital for the deal.

That means the deal will roughly stand at HK$5.84 billion ($744 million), according to Bloomberg.

As part of the deal, Xpeng will launch a new brand called MONA in 2024, whose models will be priced lower than those under the carmaker's namesake Xpeng marque.

DiDi will provide support for the MONA project with access to its nationwide shared mobility market.