Chinese automaker XPeng's aviation unit, XPeng AeroHT, has raised $150 million in a Series B1 funding round to advance the development of aerial vehicles, according to reports
The funds will be allocated to research, development, production, and commercialisation efforts. XPeng AeroHT plans to build the world's first factory for electric vertical take-off and landing (eVTOL) aircraft in China, targeting pre-sales by the fourth quarter of the year.
This initiative aligns with China's push to foster "new productive forces" in high-tech sectors such as renewable energy and the "low-altitude economy," which includes drones and flying cars, a Dow Jones article noted.
Recently, Guangzhou's local government committed 10 billion yuan (approximately $1.40 billion) to support this sector. XPeng AeroHT had previously raised over $500 million in a Series A round in 2021, led by IDG Capital, Wuyuan Capital, XPeng Automobile, and Sequoia Capital.