DiDi Global Inc. (NYSE:DIDI) is in talks with Sinomach Automobile Co., Ltd. (SHSE:600335) to buy a third of its electric-vehicle unit, two sources said, signalling the ride-hailer's regulatory troubles are in the rear view mirror as it focuses on growth. Didi aims to acquire shares in Sinomach Zhijun Automobile Co., Ltd. from minority shareholders and inject new capital into the firm, one of the sources told Reuters. A stake of that proportion would cost Didi more than CNY 1 billion ($150 million), said the other source.

The talks for a stake in Sinomach Zhijun are in an advanced stage, the sources said. One of them said the two sides have given themselves time till the month-end to nail the deal, which will see Didi become the second-biggest shareholder of the EV maker after Sinomach Automobile. Didi and Sinomach Zhijun did not respond to requests for comment.

Nor did Shanghai-listed Sinomach Automobile. The sources, who have direct knowledge of the deal talks, declined to be identified due to confidentiality constraints.