Tesla’s competitor from China Xpeng Motors raised another $ 500 million for business development
Chinese electric car company Xpeng Motors has raised new funding as competition in China’s so-called new energy vehicle market continues to heat up.
The $ 500 million in funding came from a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China. This tranche follows on the heels of $ 400 million in cash from investors, including the Chinese smartphone maker Xiaomi..
The Chinese electric vehicle industry has been hit hard by the coronavirus pandemic. New energy vehicle sales fell 33.1% year over year in June, according to data from the China Association of Automobile Manufacturers. However, sales rose on a monthly basis as the Chinese economy shows signs of recovery.
Earlier this year, the Chinese government unveiled policies that they hope will boost the electric vehicle market. It says new energy subsidies and tax breaks, which were due to expire this year, will be extended until 2022. And charging infrastructure fees across the country brought in about 2.7 billion yuan ($ 385.7 million).
China’s favorable policy towards the electric vehicle market has helped spawn dozens of domestic brands and sparked intense competition in the market.
This month, Xpeng Motors began shipping its new P7 sedan, which is seen as a competitor to the Model 3, produced by industry leader Tesla. In January, Tesla began delivering Model 3 vehicles to Chinese customers, which it will build at its China plant in Shanghai..
Chinese EV makers have been trying to raise money lately. Earlier this month, Li Auto filed for an initial public offering in the United States, but has yet to value its shares. US-based NIO Says It Received RMB 10.4 Billion of Lines of Credit This Month.
But the pandemic has also damaged some others Chinese companies that specialize in the production of electric vehicles. Startup Byton Says This Month It Has Suspended Business Operations And Fired Staff For Six Months.