XPENG AFFILIATE GETS US$150m FUNDING TO BOOST PRODUCTION
AeroHT expects the proceeds will help accelerate commercialisation of its US$200,000 flying car
AeroHT, an affiliate of Chinese electric-vehicle (EV) maker Xpeng, has raised US$150 million in its latest financing round, which it expects will help accelerate commercialisation of its US$200,000 flying car.
The start-up, controlled by Xpeng co-founder and CEO He Xiaopeng, said yesterday proceeds from the series B1 funding round would help build an advanced production line for the flying car in Guangzhou, the company’s home city.
The names of the investors were not disclosed.
“The fresh capital will strengthen AeroHT’s research and development, realise mass production of our products and speed up the commercialisation process,” the company said.
The announcement came just a month after AeroHT disclosed the US$200,000 price for the vehicle. It plans to begin taking pre-orders in the fourth quarter.
Wang Tan, co-founder and chief designer of AeroHT, told the Post’s China Conference last month that the company was aiming for sales of 5,000 units in the coming two years.
In 2021, AeroHT closed a financing round after netting US$500 million from investors including IDG Capital, 5Y Capital, Sequoia Capital and GGV Capital in what was the largest investment deal involving low-altitude air travel in Asia.
The low-altitude economy refers to businesses operating aerial vehicles below 1,000 metres in altitude. In 2021, Beijing introduced policies and regulations to bolster the nascent sector.
Known as eVTOL (electric vertical take-off and landing) vehicles, flying cars such as AeroHT’s are designed to offer an alternative to existing public transport options, allowing passengers to avoid traffic congestion.
At present, most low-altitude air travel businesses are aiming to offer services to corporate clients as they develop safe and smart next-generation flying cars.
“Overcapacity worries in the EV sector benefit leading lowaltitude-economy air travel firms as venture capitalists hunt for promising start-ups that represent the future of mobility,” said Yin Ran, an angel investor in Shanghai. “Top players must make their flying cars more affordable to foster the growth of the new transport mode.”
In March, Beijing designated Guangzhou, the capital of Guangdong province, an economic powerhouse in the south, as a base for the eVTOL industry.
In April, AeroHT signed an agreement with Panyu, also in Guangzhou, to build take-off and landing sites for flying cars.
A number of start-ups around the world are developing flying cars, betting on the future of mobility being at least partially airborne.
Germany’s Lilium raised US$830 million in a specialpurpose acquisition company (SPAC) deal on the Nasdaq stock exchange in 2021, while US air taxi start-up Joby also raised US$1.6 billion in another SPAC deal the same year.