Automotive Author:Qasim Khan Editor:Luke Sheehan Sep 29, 2020 10:42 AM (GMT+8)

The capital will be used to support Xpeng’s business expansion, including the construction of a new building in the Guangzhou Economic and Technological Development Zone.

Image credit: EqualOcean

Xpeng announced that it had reached an agreement with Guangzhou GET Investment, a wholly-owned investment company of Guangzhou Economic and Technological Development Zone, under which GET will provide a CNY 4 billion funding.

The cooperation agreement marks another milestone achievement in Xpeng’s advancement in manufacturing expansion and puts the company’s leadership position at the forefront of the EV market. In addition to its wholly-owned plant in Zhaoqing, Guangdong province, which has an annual production capacity of 100,000 units, Xpeng’s new Smart EV manufacturing base in Guangzhou will significantly expand the company’s production capacity and accelerate Xpeng’s momentum to achieve its goals in innovation, technological advancement and growth.

“We are very excited to be selected as a key player in the Guangzhou Economic and Technological Development Zone,” said He Xiaopeng, Chairman and Chief Executive Officer of Xpeng. “With the strong support from the local government, we are confident we will execute on our strategic growth initiatives and deliver the highest quality products and services to meet our customers’ needs.”

Also, Guangzhou GET Investment agreed to make an investment of CNY 1 billion in a PRC entity to be designated by Guangdong Xiaopeng by the end of March 2021. Guangzhou GET Investment also reserved previously approximately CNY 0.5 billion for participation in securities offerings by Xpeng, and roughly half of the amount is still available for additional investments in Xpeng before the end of August 2022.

Besides, Xpeng’s Guangzhou smart manufacturing base is planned to be completed and put into production by the end of 2022. It has a smart car manufacturing base with five process workshops for stamping, welding, painting, final assembly, and packing, which will be used for the research and development of its new models, vehicle production and sales. Simultaneously, the EV-maker has formed a full chain of investment, R&D, production, and sales in the Guangzhou Development Zone, and has deployed the national investment and financing headquarters, smart travel and vehicle R&D and testing businesses.