Qihoo leads $630m round for China EV maker Hozon

The round - described as the first tranche of a Series D - also features CCB International, CITIC Securities, Shenzhen-based GF Venture Capital, and an energy fund managed by securities broker Shenwan Hongyuan.

Hozon launched its Series C in July 2020, supposedly as a stepping stone to a listing on Shanghai's Star Market. It secured an initial RMB2 billion from Huading Capital, a specialist EV investor, and was expecting to raise close to RMB3 billion in total. However, there were no subsequent updates regarding a final close.

Hozon was founded in 2014 by Beijing Sinohytec, a hydrogen energy business, and the 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 between 2018 and 2020. Cumulative deliveries stood at 67,730 units as of September. More than two-thirds were delivered in 2021, representing 425% year-on-year growth. In September alone, approximately 7,700 units were delivered.

Promoting EVs is part of China's broader efforts to reduce carbon emissions. In October of last year, the State Council approved a 15-year development plan for new energy vehicles. It wants to reduce automotive-related carbon emissions by 20% from the peak level by 2035 and have NEVs account for half of all new vehicle sales.

 

The EV industry recovered from a difficult 2019 to see two leading private equity-backed manufacturers - Li Auto and Xpeng - list in the US. Meanwhile, WM Motor continues to raise private rounds, closing a $300 million Series D extension earlier this month. 

Index Venture Capital served as the exclusive financial advisor for Hozon’s latest round.

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• Topics
• Greater China
• Expansion
• Technology
• Cleantech
• China
• automobiles
• CCB International Asset Management
• CITIC Capital