Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home Email this story   Print this story
CHJ unveiled its first product, an electric SUV, at the Shanghai auto show last month.
CHJ seeks to raise up to $500 million
Reuters | 2019/5/3

HONG KONG -- Chinese electric vehicle maker CHJ Automotive is seeking to raise $300 million to $500 million (2 billion to 3.37 billion yuan) in its latest round of funding, two people with direct knowledge of the matter said, joining its peers in tapping more investors to finance growth.

CHJ, founded by entrepreneur Li Xiang, sees itself valued at at least $2.5 billion ahead of the new funding round and has hired Goldman Sachs to advise on the fundraising, they said. The bank declined to comment.

The startup, which plans to close the round of fundraising by June, also aims to go public overseas next year, said another person with knowledge of the matter.

The proceeds will be mainly used to finance mass production of its first EV, Leading Ideal One, and r&d, said the person.

A CHJ spokesman did not respond to calls or messages requesting comment. The sources declined to be named as the information is confidential.

CHJ, like several other EV companies, is hungry for cash as the Chinese government last month said it would cut subsidies for new-energy vehicles, amid criticism that some companies have become too reliant on the funds.

Reuters reported last month EV startup Leap Motor, advised by Deutsche Bank, was seeking a private fundraising of 2.5 billion yuan ($371 million).

Earlier in March, WM Motor announced it closed its Series C funding round of 3 billion yuan.

In January, Reuters reported that Byton was seeking to raise at least $500 million to finance its growth.

CHJ founder Li Xiang, however, warned earlier this month at a conference that the fundraising environment was challenging as investors have become more cautious on the industry, Chinese business publication  Caixin  reported.

Beijing-based CHJ previously raised around 6 billion yuan from investors, according to local media reports. Its main backers include venture capital firm Matrix Partners China, state-owned Shougang Fund and conglomerate Yintai Group.

The four-year-old company obtained an auto manufacturing license last year and plans to start mass production of Leading Ideal One in its wholly-owned plant in the eastern city of Changzhou in Jiangsu province in July, one of the people said.

It aims to roll out Leading Ideal One in the fourth quarter of this year, according to its website. The crossover is priced at 328,000 yuan apiece post-subsidies, which puts it in the middle to high-end category.

The company plans to open five retail centers in a few cities in May and eight more in the third quarter.

Related Stories
  • Geely opens EV research center in Germany
  •     --Published:2019/17/5
  • EV sales growth slows; plug-in hybrid deliveries pick up
  •     --Published:2019/17/5
  • S. Korea automakers' group urges end to subsidies for Chinese EVs
  •     --Published:2019/7/5
  • U.S. has battery problem in race for EV supremacy
  •     --Published:2019/3/5
  • Faraday Future secures $225 million in bridge financing
  •     --Published:2019/3/5
  • EV startup Bordrin to build vehicles at FAW's car subsidiary
  •     --Published:2019/3/5
  • U.S. legislation aims to thwart China's EV dominance
  •     --Published:2019/2/5
  • Lexus plans its first EV for China, Europe
  •     --Published:2019/26/4
  • At Shanghai auto show, a dim future for most China EV startups
  •     --Published:2019/26/4
  • Tesla: China output may hit 2,000 a week in 2019
  •     --Published:2019/26/4
  • Byton loses co-founder, CEO to electric MPV maker Iconiq
  •     --Published:2019/23/4
  • Honda to launch EV sales this year
  •     --Published:2019/23/4
  • Karma to launch China sales in second half
  •     --Published:2019/19/4

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     


    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.