Xpeng Motors seals new round of financing

Xpeng Motors, a Guangzhou-based electric vehicle startup, announced the signing of its Series C+ financing of around US$500 million on Monday.

The automaker said the financing further enhances its commitment to serving the large and growing base of technology-savvy, middle-class consumers in China by providing smart electric vehicle experiences empowered by advanced technology.

The funding comes from a group of investors including Aspex, Coatue, Hillhouse Capital and Sequoia Capital China. The signing of the Series C+ financing demonstrates investors’ confidence in the company’s strategy, market positioning and its long-term vision as a leading smart electric vehicle enterprise in China.

China's new-energy vehicle market was impacted by the COVID-19 outbreak earlier this year. However, with the resumption of work and production as well as consumer confidence rebounds, green car sales have been climbing month on month.

Sales of electric cars and plug-in hybrids totaled 104,000 units in June, an increase of 26.8 percent from May but down 33.1 percent compared with the same month in 2019, according to data from the China Association of Automobile Manufacturers.

Xpeng Motors launched its second smart electric vehicle model, the P7 sports sedan, in April this year. The startup began to deliver P7 sedans to car buyers on July 17. In March last year, Xpeng started mass deliveries of its first electric sport-utility vehicle model, the G3. 

The automaker also secured the production license for its self-built fully-owned factory in Zhaoqing, Guangdong Province in May. The company announced its Series C funding round of US$400 million in November 2019.