Changan Automobile’s electric vehicle (EV) unit, Deepal, has completed its Series C funding round by raising RMB 6.122 billion ($874 million). The funds will support the company’s global expansion and intensify competition in the EV market.
Key Takeaways
- New investors Yufu Holding Group and CMB Financial Asset Investment join Deepal’s shareholder base.
- The funding round brings Deepal closer to its global sales target of 700,000 vehicles.
- Sales for January through November increased by 45.73% year-on-year with over 302,118 units sold.
Deepal’s Series C funding has attracted two new major shareholders: Chongqing-based state-owned enterprise Yufu Holding Group and the financial arm of China Merchants Bank, CMB Financial Asset Investment. The company will use these funds to support its ongoing expansion efforts worldwide.
In November alone, Deepal sold 33,060 vehicles across various models including the S09 SUV displayed at this year’s Shanghai Auto Show. This marks a third consecutive month of exceeding 30,000 units despite an overall decline in sales from last year by 8.23%.
Changan retains its majority stake with 50.9959 percent ownership after the latest round, while Yufu Holding Group and CMB Financial Asset Investment now hold stakes of 12.0934 percent and 2.4187 percent respectively.
The Deepal brand was launched in early 2022 with its first model being the SL03 sedan aimed at competing directly against Tesla’s Model 3. Since then, it has expanded its lineup to include several other models such as the L06 and L09 sedans alongside various SUVs.
Frequently Asked Questions
How much funding did Deepal raise?
$874 million (RMB 6.122 billion) was raised in the Series C round of financing.
Who are Deepal’s new investors?
The two new shareholders include Yufu Holding Group and CMB Financial Asset Investment, a subsidiary of China Merchants Bank.
This latest funding injection will help propel Deepal forward in its ambitious plans to compete globally with established automakers like Tesla. The company’s robust sales growth underscores its growing presence within the EV market.
