Chongqing Changan New Energy Vehicle Inc. (Changan NEV) on Monday announced the completion of round-B financing totaling 4.977 billion yuan ($786.5 million). The funds are to be allocated for the R&D of new energy technology, market expansion and brand building.
The investors include existing shareholder Changan Automobile and South Industry Assets Management, as well as new investors such as the Bank of Communications Boyu No.1, Chengyuan Fund, Wuhu Xinshi Xinhong, CICC Keyuan Equity Investment Fund and South Industry Fund. After this capital increase, Changan Automobile’s shareholding ratio decreased from 48.95% to 40.66%, yet remaining the largest shareholder.
In 2017, Changan Automobile released the Changan Automobile New Energy Strategy, which it called the Shangri-La Plan, stating that by 2025 it will stop selling traditional fuel vehicles and electrify its entire product range. The firm established Changan EV in 2018.
In 2021, Changan NEV sold over 100,000 vehicles, up 300% year-on-year, and the best-selling model was the Changan Benben EV. According to the Federation of China Passenger Car Association, the sales volume of Changan Benben EVs reached 76,000 vehicles. Deng Chenghao, general manager of Changan EV, said that the sales volume will double to 210,000 vehicles next year, exceed 500,000 vehicles by 2024, and achieve a positive cash flow.
According to data from China Venture Investment Consulting Ltd., in the first eleven months of 2021, China’s venture capital and private equity investment market invested at least $5.5 billion in new energy vehicles and $6.2 billion in batteries. If counting the 45 billion yuan increase that Contemporary Amperex Technology Co., Limited (CATL) received and got approved by the Shenzhen Stock Exchange a week ago, the new energy sector in China has raised more than 100 billion yuan.