Hefei said to pump 2 billion yuan into EV startup Leapmotor

Shanghai (Gasgoo)- Hefei municipal government intends to invest around 2 billion yuan ($308.2 million) in Leapmotor, a Hangzhou-headquartered Chinese EV startup, according to a local media outlet, quoting a person close to the startup's senior management.

Hefei's investment in Leapmotor will be carried out in two installments with 200 million yuan ($30.82 million) having been plowed to the EV maker’s Series B financing round, according to the person briefed on the matter. The other 1.8 billion yuan ($277.38 million) will be pumped into the Pre-IPO funding round Leapmotor has launched at a valuation of 22 billion yuan ($3.39 billion).

After being reached for a comment, Leapmotor said the result should be subject to its announcement.

Leapmotor C11; photo credit: Leapmotor

Leapmotor entered into a strategic partnership with Hefei earlier this month for an all-round in-depth cooperation on new energy vehicle (NEV) business. The agreement made the company the second Chinese EV startup supported by the capital of Anhui province following NIO.

Founded in 2015, Leapmotor owns many core technologies developed in-house, which are related to battery, electric motor, electrical control unit, intelligent connectivity as well as autonomous driving.

Leapmotor has to-date had three mass-produced models for sale, namely the S01, the T03 and the C11. Unlike most startups who choose SUV as their first mass-produced model, Leapmotor's first production vehicle, the S01, is positioned as a small-sized all-electric coupe.

The startup announced the presale of the C11, its third production model, began on Jan. 1, 2021, coming with three trim levels. Guiding prices range from 159,800 yuan ($24,625) to 199,800 yuan ($30,790) after subsidies.

Leapmotor sold 11,391 new vehicles through 2020, including 1,125 S01s and 10,266 T03s. For the month of December 2020, its auto sales leapt 49% month on month to 3,024 units.