Baidu Capital leads $466m Series C for China’s WM Motor

Other participants include state-owned fund Taihang Industrial Fund and Linear Venture. Baidu Capital, an investment unit of Chinese internet giant Baidu, participated in a round of undisclosed size in 2017, together with its parent, SIG Asia, and Ameba Capital. WM claims to have raised over RMB23 billion in total.

The company was established in late 2015 by Freeman Shen, previously group vice president at Chinese automaker Zhejiang Geely Holding. Shen said the fresh funding will be used to explore opportunities in areas such as autonomous driving and the internet-of-things technology. There are also plans to improve the production efficiency, with WM aiming to manufacture vehicles at a faster pace this year, according to a statement.

The company’s main products include a compact SUV - WM EX5 - that is priced at RMB110,230-240,000, depending on the size of the government subsidy. As of the end of February, the company claimed to have manufactured over 10,000 EX5s, with its factory capable of churning out 200 units a day.

China is one of the largest markets globally for electric vehicles and hybrid cars. There are several well-funded start-ups such as Xpeng Motors, CHJ Automotive, LeapMotor, and Skio Matrix, while Nio went public in the US last year. 

However, these companies would come under pressure if the Chinese government follows through on suggestions that it will gradually phase out all subsidies for new energy vehicles. Meanwhile, US rival Tesla recently lowered the prices of its vehicles in China, presenting a challenge to Chinese manufacturers that see affordability as one of their biggest selling points.

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• Topics
• Greater China
• Expansion
• Industrials
• Technology
• Baidu
• automobiles
• Transportation
• Growth capital