Xpeng Motors’ latest electric car is called the P7.
Xpeng Engines
Chinese electric car company Xpeng Motors has raised new funds as competition continues to rise in China’s so-called new energy vehicle market.
The $ 500 million financing came from a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China. A $ 400 million cash injection follows in November by investors including Chinese smartphone maker Xiaomi.
China’s electric vehicle sector has been hit hard by the coronavirus pandemic. New energy vehicle sales fell 33.1% yoy in June, according to data from the China Association of Automobile Manufacturers. However, sales have increased month by month as the Chinese economy shows signs of rebound.
Earlier this year, the Chinese government unveiled policies it hoped would stimulate the electric car market. He said the new energy vehicle subsidies and tax exemption policies that would expire this year extended until 2022. And charging infrastructure across the country received an injection of 2.7 billion yuan ($ 385.7 million) .
China’s favorable policies towards the electric car market have helped generate dozens of national brands and fueled intense competition.
This month Xpeng Motors began delivering its new P7 sedan, which is considered a competitor to the Tesla Model 3. In January Tesla began rolling out Model 3 cars made at its Shanghai factory to customers in China.
Chinese electric car makers have recently been pushing to raise money. Earlier this month, Li Auto requested an initial public offering in the United States, but has not yet valued its shares. And NIO, which is publicly traded, said it had obtained lines of credit worth 10.4 billion yuan this month.
But the pandemic has also affected some electric vehicle companies in China. Start-up Byton said earlier this month that it was suspending business operations for six months and suspending staff.
.
