Chinese manufacturer Xpeng receives $2 billion support for electric cars

Chinese electric vehicle maker Xpeng said on Tuesday (12 January) it has secured a credit line of close to 13 billion yuan ($2 billion) from five Chinese banks to expand manufacturing and sales.

The agreement was signed with Agricultural Bank of China, Bank of China, China Construction Bank, China CITIC Bank and Guangzhou Rural Commercial Bank.

The New York-listed Xpeng, which has a market value of $35 billion, said the credit facility will diversify its funding channels.

The maker of the P7 sedan and the G3 sport-utility vehicle is planning to build a third car plant in China.

The move is a further indication of the automotive industry’s growing support for electric vehicles.

Sales of battery-electric vehicles in Germany increased three-fold to more than 194,000 units in 2020, according to the country’s road-traffic regulator.

Citing the appeal of a more diversified product offering and of more reliable technology, Richard Damm, president of German regulator KBA claimed that “e-mobility has become a mainstream feature of the mobile society”.

UK Prime Minister Boris Johnson has outlined a plan to ban sales of cars that lack a plug from 2030, while Germany has recently said it will extend cash bonuses for purchasing electric vehicles until 2025, is set to expand the country’s charging network and make payments for topping up batteries easier.

California will also phase out sales of new gasoline-powered cars by 2035 as part of its fight against climate change, Governor Gavin Newsom said last September.

Xpeng, which sells mainly in China and competes with Tesla and Nio, delivered just over 27,000 vehicles last year.