Chinese EV maker Hozon raises $305m
Zhengjiang-based Electronic Vehicle (EV) start-up Hozon Auto has raised RMB2 billion ($305 million) from Huading Capital, a specialist EV investor.
This is part of a Series C funding round that will close shortly at more than RMB3 billion, according to Hozon. The company launched the round in July as a stepping stone to listing on Shanghai's Star Market.
Hozon was founded in 2014 by Beijing Sinohytec, a hydrogen energy business, and Zhejiang Yangtze Delta Region Institute of Tsinghua University. Its first concept car was announced in 2017. The company opened an autonomous vehicle research center in Silicon Valley in 2018 and a design center in Beijing in 2019.
Hozon positions its cars as mass-market affordable. There are three models in mass production - the Nezha N01, Nezha U, and Nezha V - launched in 2018, 2019 and 2020, respectively. Cumulative sales are nearly 30,000 units. The Nezha V has total orders exceeding 5,000 units with just over 1,000 shipped in the first month. The car is priced at RMB59,900-75,900 yuan. A fourth model, the Eureka03, is scheduled for launch next year.
Huading Capital has RMB50 billion in assets under management and is known for its investments in EV battery maker CATL and Huading Guolian Power Battery. Battery material supplier BTR New Materials Group also features in its portfolio.
Recent EV investment activity includes a RMB5 billion round for Enovate, a new energy vehicle manufacturer, and a RMB10 billion round for WM Motor. Led by SAIC Motor and several government investment platforms, it is said to be the largest single funding round in China's EV industry. Real estate developer Evergrande Group is also ramping up its EV ambitions, having secured HK$4 billion ($516 million) for Evergrande New Energy Vehicle.
The EV industry has recovered from a difficult 2019 and seen two IPOs in the US this year. First, Li Auto raised $1.1 billion through a NASDAQ offering in July, and then Xpeng tapped the New York Stock Exchange for $1.5 billion in August.
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