EV maker Xpeng Motors raises $400 million from investors including Xiaomi

EV maker Xpeng Motors raises $400 million from investors including Xiaomi

The Xpeng G3 SUV and P7 sedan.

Xpeng Motors

Chinese start-up Xpeng Motors raised $400 million from investors as it looks to boost the production of its new models and gain a larger slice of China’s fast-growing electric vehicle market.

Chinese smartphone-maker Xiaomi is one of the investors. CNBC reported earlier this year that Xpeng was looking for fresh funding for growth.

China has seen a boom in electric car start-ups, thanks to government support including subsidies for companies which make the so-called new energy vehicles. It has attracted a lot of capital to the sector.

However, Xpeng’s funding comes at a time when the government is cutting back those subsidies with a view of possibly phasing them out.

Xpeng has launched and started deliveries of a model called the G3 SUV. In April, the company also unveiled a sedan called the P7. The Chinese automaker has been looking to ramp up the production and deliveries of its cars. The company plans to launch the P7 sedan in Spring 2020 and will start delivery in the second quarter next year.

Xiaomi and Xpeng will work together on developing technologies, according to the companies.

“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 He Xiaopeng, CEO of Xpeng Motors, said in a press release.

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