China-based electric vehicle and technology firm, Xpeng Motors, has raised around $500 million in a Series C+ round from a group of venture investors. This investment will further boost the tailored development models to China’s tech-savvy middle-class consumers.
Honk Kong-based Aspex Management, Beijing-based Hillhouse Capital, China-based Sequoia Capital, and the US-based Coatue Management, were investors in the Xpeng’s latest round. Earlier this round, the startup had raised $400 million in late 2019.
This Chinese EV startup is increasing its chances of maintaining a stable competitive position in the world’s largest electric-car market, where it competes with the same sector leader like Tesla Inc., and local EV manufacturers like NIO Inc. and such global rivals as Mercedes-Benz maker Daimler AG and BMW AG. Since last year, the government has scaled back subsidies as the market is in its early stages in industry sales.
Other budding EV makers, such as Byton Ltd., have run out of funding and slashed down operations in 2020 amid the market slump, which was aggravated by the novel pandemic. According to the China Passenger Car Association, the sales of new-energy vehicles, including EV, decreased 35% to 85,600 units in June.
Meantime, competition is getting tougher, with the number of new Tesla registrations increasing to a record. Alongside this, BMW and Mercedes have brought out EV models.
Xpeng delivered 5,185 units of the G3 SUV, its first vehicle, in the first half, and also it begins its deliveries of the P7 Sedan, its second model, past week.
In September, One P7 variant has an available range of up to 706 kilometers (439 miles) in only one charge. It costs about 254,900 yuan ($36,000) after subsidies, notably less than competing NIO and Tesla models.
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