Ucar Group, a mobile app-based chauffeured car service launched by Chinese car rental company CAR Inc., has led a RMB2.2 billion (US$320 million) strategic investment in Xiaopeng Motors, a Guangzhou-based electric vehicle maker.
Ucar made the investment via its automobile industrial fund, a RMB-denominated investment vehicle established four days ago by the company with an aim to raise RMB10 billion (US$1.4 billion) to invest in emerging automobile technology companies.
As part of the latest investment, Ucar plans to purchase Xiaopeng’s self-made vehicles, assist the company’s sales and maintenance efforts, as well as cooperate on offering car financing products to buyers. Ucar also plans to work with Xiaopeng on big data and joint marketing.
Ucar just received a RMB2.4 billion (US$353 million) strategic investment from People’s Insurance Company of China Ltd. (PICC) last week, bringing the company’s follow-on fundraising to a total RMB7 billion (US$1.03 billion) since it was listed last summer.
Founded in 2014, Xiaopeng Motors focuses on developing Internet cars and electric vehicles, as well as research on autonomous driving technologies. Its first product was an electric sport utility vehicle, with features including intelligent central touchscreen, intelligent low-speed driving and remote control.
Xiaopeng previously raised a US$40 million series A round from unnamed investors last March. Its investors in the angel round includes YY Inc’s founder Li Xueling, Cheetahtah Moile Inc’s CEO Fu Sheng, Tencent Holdings Ltd’s executive Wu Xiaoguang, and Zhang Yin, founding managing partner of Matrix Partners China.
Last month, the company said it planned to establish a factor in Guangdong province with annual production capacity of manufacturing 100,000 vehicles.