Chinese electric car-maker, Xiaopeng Motors, announced that it raised 2.2 billion yuan (approximately $347.74 million) in a funding round led by Chinese e-commerce giant Alibaba Group Holdings Ltd and Foxconn Technology Co Ltd. The round also saw participation from other prominent investors including IDG Capital, GGV Capital, Morningside Venture Capital, and Matrix Partners, stated Alibaba on its press website. The website also stated that the Russian billionaire investor, Yuri Milner is also supporting the initiative.

The latest inflow of funds brings the startup’s total funding to 5 billion Yuan as per a statement released by it.  Alibaba was also an investor in the Guangzhou-based electric car company’s previous round of funding held in December last year. The startup has stated that its first vehicle, the “G3” will hit the market this year.

Xiaopeng debuted its electric car at CES in Las Vegas this month and is one of the numerous Chinese startups looking to accelerate the development of battery powered technology and compete with global players like Tesla Inc. The sales of new energy vehicles in China are projected to grow by 40 per cent in 2018, as per an industry body, although the country’s traditional automotive market slowed down sharply in 2017. The competition in the new energy vehicles (NEV) market has been escalating.

“Smart transportation has great potential to become one of the fastest growing sectors, making huge impact on people’s daily lives,” said Joe Tsai, Executive Vice Chairman of Alibaba, at Xiaopeng’s Hong Kong press conference. “XPENG Motors combines the advantages of the internet, artificial intelligence and traditional manufacturing. Alibaba is very excited to work together with XPENG Motors to accelerate the integration and innovation across sectors, leading to more-rapid development in smart transportation.”Alibaba has been investing heavily in the smart car technology segment and has also partnered with a number of Western and Chinese carmakers, including Ford Motor Co. and BMW.

(Picture courtesy: Electrek)