The world's biggest automaker shake hand with China's leading ride-hailing company Didi for the first known project purpose-built" vehicles for Didi's services.

The source's information states that the deal between China's leading ride-hailing company and Volkswagen is expected to be signed in early May, also VM will manage a fleet of about 100,000 new vehicles for Didi. The latest deal allowing a Chinese company to expand its fleet and VM will buy new cars to support Didi. Both eventually plan to collaborate to develop and design dedicated vehicles, rumors say.

Board member in charge of strategy at Volkswagen Group China, Weiming Soh said, "The joint venture with Didi is not just about ride-hailing. We want to explore mobility projects as well as autonomous driving and robot-taxis."

The deal will allow biggest automaker Volkswagen to enter into the Chinese market to compete its biggest rival General Motors. The automaker hoping that this alliance will give it an edge.

VM executive said, "To succeed as a car company in this new ecosystem, we need to know who our customer is, what their journey is and what our strategy should be."

China's Didi anticipated its future would be electric. Sources said that the ride-hailing started working with CHJ Automotive and GAC Motor to shape electric vehicles. The company does not reveal the shape of a new ride-sharing market, but its working on how to maintain, repair a fleet of self-driving vehicles.