(Bloomberg) -- Chinese electric-car maker Xpeng Motors Technology Ltd. has raised $400 million from investors including technology company Xiaomi Corp., as it seeks a spot among China's more serious contenders in the market.
Private-equity firms and individual investors including founder He Xiaopeng also took part in the funding round, the company said Wednesday in a statement.
The startup said in June it has produced 10,000 units of its G3 sport utility vehicle, putting it in competition with local rivals such as NIO Inc. and global competitors including Tesla Inc. in the world's biggest EV market.
Yet demand in China is sputtering, with EV sales falling for months since the government cut subsidies earlier this year. The slump has raised speculation among investors that only a small fraction of China's aspiring electric-car makers will survive.
NIO's Mounting Woes Stoke Fears China EV Bubble is Bursting
Xpeng is working with Xiaomi in developing technologies connecting smartphones with vehicles. Xpeng's backers also include ecommerce giant Alibaba Group Holding Ltd.
The carmaker said it also secured “several billions” of yuan in unsecured credit lines from China Merchants Bank Co., China Citic Bank Corp. and HSBC Holdings Plc.
To contact the reporters on this story: Ville Heiskanen in Singapore at vheiskanen@bloomberg.net;Chunying Zhang in Shanghai at czhang714@bloomberg.net
To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen, Will Davies
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