Ucar invests in Xpeng Motors to produce electric cars

Tinuku ~ Ride-Hailing Ucar invests in startup of Xpeng Motors electric vehicle. Ucar, an application launched by China Auto Rental (Car Inc) registered in Hong Kong, has provided 2.2 billion yuan (US$324 million) to Xpeng Motors as one of Tesla's challengers in China on Monday 12 June 2017.

Tinuku Ucar invests in Xpeng Motors to produce electric cars

Beijing-based Ucar announced the company has set aside a total of 10 billion yuan focusing on future automotive technology with its first investment into start-up of China's electric vehicle Xpeng Motors. The fund is the beginning to expand the business into the whole value chain.

"We are already the largest vehicle buyers in the country and we have a strong sales network and a diverse range of services for people to drive," said Lu Zhengyao, Ucar's chairman and chief executive.

"We will also help Xpeng improve product manufacturing, establish a sales and after sales network, as well as marketing with large data support," Zhengyao said.

Xpeng based in Guangdong Province was founded by Cheetah Mobile chief executive Fu Sheng and founder YY Li Xueling in 2014 to become one Tesla challenger in mainland China and use the power of the internet to shift the traditional car-making industry.

The startup claims to be the first carmaker in mainland China and capable of mass-producing electric vehicles to succeed in plans to sell cars from its production line this year.

Ucar was launched in January 2015 and started as a proven car service provider, but has since expanded into an e-commerce car and financing.

Ucar uses an official car fleet and has a licensed driver serving 122 cities in China in April as a strategy that has helped to avoid the regulatory hurdles that hinder China's ride-hailing companies.