Chinese electric car company Xpeng Motors began delivering its P7 sedan model last month, which is almost similar to Tesla Model 3.
In fresh funding, Chinese electric vehicle company Xpeng Motors has managed to raise a total of $500 million from different private investors. Some of the investors who took part in the Xpeng Motors funding include Aspex, Coatue, Hillhouse Capital, and Sequoia Capital China.
Also known as Xiaopeng Motors or XMotors.ai is a company headquartered in Guangzhou but with international offices located in California, United States. Last year around November, the company received up to $400 million from different investors including Chinese smartphone maker Xiaomi.
With the EV market growing immensely in China, the company is aligning its goals to compete with other EV companies fighting for the same pie.
One of its major competitors includes American giant EV company, Tesla Inc (NASDAQ: TSLA) which has released a wide range of models for its customers to choose from.
After Funding Xpeng Motors Is Fully Ready for Post-COVID-19 Market Takeoff
As the Chinese market continues showing signs of rebounding despite being hit hard by the coronavirus pandemic, such a magnitude of capital is anticipated to see it through any kind of economic hardship.
According to data from the China Association of Automobile Manufacturers, sales of new energy vehicles sharply declined in the first two quarters of the year. Its further analysis indicated that Sales of new energy vehicles fell 33.1% year-on-year in June.
However, in the past few months, there has been a change in sales. This has been largely attributed to the Chinese government’s ability to control the coronavirus spread hence increasing confidence in the slow reopening of the market.
Xpeng, which is significantly backed by Alibaba Group Holding Ltd and led by Chief Executive He Xiaopeng, has two products ready for the market. One is the electric G3 sport-utility vehicles (SUVs) and the other is the P7 sedans with autonomous driving capabilities in two Chinese plants
The company began delivering its P7 sedan model last month, which is almost similar to Tesla’s Model 3 sedan. This is expected to heighten the competition in electric car vehicles as global leaders push for cleaner energy forms of vehicles on the road.
According to its yearly goals, the company anticipates having about 200 showrooms in China by the end of this year.
They are to play a vital role as China continues advocating for further increase in new energy vehicles in the market. As possibilities of the coronavirus pandemic being tamed to sustainable figures, companies that will have laid its infrastructure to develop cheap, reliable and efficient electric cars will significantly benefit from the huge Chinese and larger Asian market.
Other news from the transportation industry can be found here.
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