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New energy car vendors perform outstandingly in 1H22 China fund-raising market

Nuying Huang, Taipei; Adam Hwang, DIGITIMES Asia 0

Credit: AFP

China-based vendors of new energy cars, in the 1H22 China fund-raising market, absorbed the largest amount of funds among various domains of venture capital investment, according to China-based media reports.

There were 5,443 transactions of venture capital investment with a total amount of CNY 245.2 billion (US$37.6 billion) in China in the first half of 2022, increasing 17.8% on year. Investment in automobiles and transportation-related businesses ranked first among all domains, totaling CNY 43.25 billion, taking up 17.6% of total investment.

Among new energy car vendors, Chongqing Changan New Energy Vehicle Technology raised funds of CNY 5.0 billion in the first half of 2022, Beijing BeyonCa Intelligent Technology was invested in with CNY 10.0 billion, BYD with CNY 6.0 billion, Jidu Automobile with CNY 2.0 billion and GAC Aion New Energy Automobile with CNY 2.0 billion.

There were about 2.6 million new energy cars sold in the China market in the first half of 2022, hiking 120% on year and taking up over 20% of all new cars sold in the six months.

Venture capital firms' investment in new energy car vendors focused on Level 2 autonomous driving. Level 2 autonomous driving based on ADAS (advanced diver assistance system) penetrated 23% of all existing cars in China in the first quarter of 2022, and China-based companies engaged in development and production of ADAS have begun to get return on investment and therefore have become attractive to venture capital investment firms.

While Levels 1 and 2 dominate autonomous driving and are expected to prevail globally over the next 3-5 years, many local governments in China have set policies encouraging R&D Level 3 autonomous driving. For example, the government of Guangzhou City, southern China, has offered a subsidy of CNY 10 million for a car model meeting Level 3 or higher autonomous driving standards specified by China's Ministry of Industry and Information Technology, with total subsidization of an enterprise subject to a maximum of CNY 30 million.

In addition to new energy car vendors, China-based automotive SoC developer SiEngine Technology raised the most funds in the first half of 2022 among automotive IC design houses and developers of car-use mmWave radars and LiDARs.

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