Xpeng Motors a Chinese startup, that is being dubbed as a rival to Tesla, raised $400 million from its investors as it is looking to boost production of its new models and capture a larger portion of China’s fast-growing electric vehicle market.
One of the investors is the leading Chinese smartphone maker Xiaomi.
Thanks to favourable policies from the government including subsidies for the companies, which make the so-called new energy vehicles, China auto industry is seeing a boom in electric car start-ups. A lot of investment has poured in due to this.
However, Xpeng’s financing has come in at a bit of a tricky time, because now the government is rolling back these subsidies, with of view of possibly totally eliminating them.
Xpeng has just launched and started the deliverise of its SUV called the G3. Back in April, a sedan called the P7 was also unveiled. The reason why the Chinese automaker has attracted investment, is that it is looking to speed up the production and delivery of its vehicles. Xpeng plans to launch its P7 sedan in Spring next year, followed by deliveries in the second quarter of 2021.
Apart from the financial partnership, Xiaomi and Xpeng will also partner in technology development, according to both the comapnies.
“Xiaomi’s experience and insight in consumer behavior, technology know-how and market trends can add tremendous value to what Xpeng Motors is set to achieve,” said, CEO of the Xpeng Motors, He Xiaopeng said in a press release.
Source : Xpeng Motors