XPeng Inc., a leading Chinese smart electric vehicle company, announced that its subsidiary in China has reached a strategic cooperation agreement with Guangdong Yuecai Investment Holdings Co., Ltd. (“Yuecai”), the investment arm of the Guangdong provincial government. Pursuant to the agreement, Yuecai will invest a total of RMB500 million ($77 million), through the Guangdong Industrial Development Fund, in XPeng’s subsidiary in China to further accelerate the Company’s business expansion.
The investment recognizes XPeng’s leadership position in the Smart EV industry in China and its strategy of developing proprietary R&D tailored for local customer needs. The investment also acknowledges XPeng’s significant contributions to local economic development, in particular to the transition of the automobile sector, developing advanced EV technologies, and building the connected and intelligent mobility ecosystem and supply chain, as well as to the local talent base expansion in Guangdong Province.
The Guangdong Industrial Development Fund promotes high quality developments in the manufacturing industry with a keen focus on the strategic development of the automobile industry, one of the economic pillars of Guangdong. The investment in XPeng creates a win-win solution, not only enhancing XPeng’s leading role in the Smart EV sector but also accelerating the automobile industry’s strategic transition in Guangdong.
Headquartered in Guangzhou, the capital city of Guangdong, XPeng has a strong foothold in the Province. The Company currently employs over 5,000 staff, the majority of them based in Guangdong, and has two wholly-owned intelligent manufacturing bases in the Province, one in full operation in Zhaoqing, and the other under construction in Guangzhou.
A key component of China’s Greater Bay Area, Guangdong Province is the largest contributor to the country’s GDP. In 2020, the GDP of Guangdong Province exceeded RMB11 trillion, marking its top GDP ranking in China for 32 consecutive years.
“Guangdong is our birthplace, where we design, innovate, research and build our products. It has nurtured our growth and witnessed our progress for the past six years. This investment from the Guangdong provincial government reinforces our commitment to driving Smart EV transformation with technology and data, and to building a comprehensive EV infrastructure in the fastest-growing areas of China,” said He Xiaopeng, Chairman and CEO of XPeng at the signing ceremony.
The Guangdong Industrial Development Fund manages RMB50 billion of assets, focusing on industrial upgrading and reform developments to foster growth in emerging sectors such as information technology, high-end equipment manufacturing, new energy and biomedicine.