Xpeng Motors’ latest electric car is called the P7.
Chinese electric car company Xpeng Motors has raised new funds as competition continues to intensify in China’s new energy vehicle market.
The $ 500 million funding came from a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China. It follows a $ 400 million injection in November investors including Chinese smartphone maker Xiaomi.
China’s electric vehicle industry has been hit hard by the coronavirus pandemic. Sales of new energy vehicles fell 33.1% year-on-year in June, according to data from the China Association of Automobile Manufacturers. However, the sales increased month by month, Chinese economy shows signs of rebound.
Earlier this year, the Chinese government unveiled policies it hoped to boost the electric car market. He said new energy vehicle subsidies and tax relief policies that were due to expire this year have been 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 spawn dozens of domestic brands and intense competition.
This month, Xpeng Motors began deliveries of its new P7 sedan – which is seen as a competitor to Tesla’s Model 3. In January, Tesla began rolling out Model 3 cars manufactured in its Shanghai factory to customers in China.
Chinese electric car makers have recently pushed to raise funds. Earlier this month, Li Auto filed an initial public offering in the United States but has yet to price its shares. And NIO, listed in the United States, said it got 10.4 billion yuan in lines of credit this month.
But the pandemic has also affected some electric vehicle companies in China. Start-up Byton said earlier this month it was suspending business operations for six months and laying off staff.