China chassis component supplier raises $279m
Hopu Investments has participated in a CNY 2bn (USD 279m) Series A round for Jingxi Zhixing Zhangjiakou Automotive Electronics, a China-based supplier of components used in car chassis.
The round was led by Zhangjiakou Financial Holding Group, a local government-backed investor, and featured Shenzhen Investment Holdings and Yunshi Global Capital.
It follows Jingxi Zhixing's acquisition of a 55.45% interest in Hong Kong-listed BeijingWest Industries last year. The stated purpose of the deal was to transform BeijingWest into a smart chassis provider.
BeijingWest currently has nine production plants, seven R&D centres, and three test sites globally. It employs nearly 5,000 people. The product line includes key components such as brakes and shock absorbers, according to a statement.
The company serves more than 50 global automotive brands, including Lamborghini, Ferrari, Porsche, Audi, Mercedes-Benz, BMW, Volkswagen, GM, Chinese brands such as Geely, Changan, Great Wall and Chinese electric vehicle makers such as Nio and Xpeng.
Jingxi Zhixing is described by Hylands Law Firm - which advised on the BeijingWest deal - as a joint venture between Zhangjiakou Financial Holding Group and Cloudstone Global Capital Management.
"In the future, the company will continue to deepen its research and development, improve production efficiency and product quality by introducing innovative technologies and products of intelligent chassis," said Jieliang Zheng, global CEO of BeijingWest. He added that the company would also contribute to the digitalisation and "smartization" of the automotive industry.
The electric vehicle (EV) supply chain – which includes manufacturers of not only vehicles, but also the batteries, smart cockpits, and semiconductors that sit inside them – appears to be largely immune to China’s PE slowdown. Last year, EV makers alone raised USD 5.5bn, up from USD 2.5bn in 2021, according to AVCJ Research.
Recent activity in the smart chassis component space includes a CNY 200m Series A for Tsinghua University spinout Bibo. Xiaohui, Liu, the company's founder, previously told AVCJ that the market for intelligent chassis solutions in China can be worth CNY 50bn.
Penetration is increasing rapidly. By 2026, 50%-60% of all cars, not just EVs, are expected to use these products.
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