Chinese smart electric vehicle firm Avatr Technology has raised 11.1 billion yuan ($1.52 billion) from investors including China’s Chongqing Changan Automobile, marking the largest fundraising by a Chinese EV brand this year.
Changan announced the fundraising in a filing to the Shenzhen Stock Exchange, saying it and other investors planned to jointly boost capital in Avatr.
Changan Auto will invest 4.6 billion yuan in the Chinese EV maker, with its holdings remaining at 41.0%.
The fundraising comes as competition and a bruising price war in the world’s largest auto market, which have dragged on Chinese startups and foreign automakers, are expected to further intensify.
In September, Chinese EV maker Nio 9866.HK said it and other strategic investors would inject 3.3 billion yuan into its China unit.
Avatr is also backed by Huawei, which has been rapidly growing its presence in the auto industry with the roll out of its autonomous driving technology, as well as the world’s largest battery maker CATL 300750.SZ.
The registered capital of Avatr will be increased to 3.1 billion yuan from 2.0 billion yuan previously, Changan’s filing showed.
($1 = 7.2836 Chinese yuan renminbi)
Reuters
