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Chinese Tesla challenger Xpeng acquires auto manufacturer, could gain licence to produce own cars
- Guangzhou-based electric car maker Xpeng is expected to obtain Guangdong Foday Automobile’s manufacturing licence by buying out the latter
- It recently got the green light to test drive its new P7 model in the US
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Chinese electric car maker Xpeng Motors has acquired an established local auto manufacturer, in a move that could take it one step closer to being able to independently produce its own vehicles.
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The Guangzhou-based carmaker confirmed on Monday that it had fully acquired Foshan-based Guangdong Foday Auto Company.
“The transaction is a critical step of our long term strategic plan,” an Xpeng spokeswoman said. “It will further strengthen Xpeng’s supply chain management, product development and manufacturing capabilities.”
Backed by Post parent company Alibaba Group Holding, IDG Capital and Xiaomi among other investors, the five-year-old company is one of China’s most prominent electric vehicle start-ups and has been hailed as a challenger to market leader Tesla.
Local media reported that through the buyout, Xpeng would obtain Guangdong Foday’s vehicle manufacturing licence, allowing it to produce its own vehicles.
Last year, Beijing tightened its rules on the production of electric vehicles, making it more difficult for small players to obtain the permits.
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