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Future of transport
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Xpeng raises US$348 million as Chinese electric car start-ups battle for attention

Start-ups investing billions in advanced technologies that form the backbone of autonomous and connected driving, both seen as the future of mobility

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He Xiaopeng, co-founder and chairman of Xiaopeng Motors, unveils the company's first production car at the CES trade show in Las Vegas earlier this month. Photo: Handout
Sarah Daiin BeijingandZen Sooin Hong Kong

Xiaopeng Motors, the electric car start-up backed by Alibaba Group Holding, is nearing the close of a 2.2 billion yuan (US$348 million) funding round, accelerating the pace of competition among start-ups in the world’s largest auto market.

The latest series B round is led by Alibaba, Foxconn and IDG Capital, the company announced in Hong Kong on Monday. Other investors include Yunfeng Capital, CICC and Morning Ventures.

“The funding round is a milestone for Xiaopeng,” said co-founder and chairman He Xiaopeng. “While financing may be vital to the survival and development of internet cars, game-changing factors depend on innovation, rapid execution and product managers with a customer-centric mindset.”

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Xiaopeng, also known as Xpeng, unveiled its first production model at the CES technology show in Las Vegas earlier this month. The G3 features a windscreen that extends all the way back to mid-roof giving occupants a sky view, Star Wars-inspired headlights – the auxiliary lamps are shaped like light sabres – and a contour that the company said resembles a shark.

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The car is expected to be priced between 250,000 yuan and 300,000 yuan (US$47,440) when it goes on sale later this year, putting it in the same price bracket as Audi’s Q3, Mercedes-Benz’s GLA and BMW’s X1. Tesla’s Model X starts from about US$118,000 in China.

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