FAW invests in BYTON’s B-round funding

Shanghai (Gasgoo)- On Apr. 20, FAW Group and BYTON signed a framework cooperation agreement on BYTON's B-round funding, signifying the first cooperation between state-owned car manufacturers and EV startups. As a strategic investor, FAW will work with BYTON in product R&D, manufacturing, sales and services. However, the state-owned carmaker declined to disclose the specific amount of the investment.

According to local media, BYTON has caught wide attention after it showcased its first model at the CES 2018. FAW Group also showed great interest in BYTON at the CES 2018. In recent days, FAW contacted closely with BYTON and made a rapid decision in investing in BYTON. The success of their cooperation is mainly because of BYTON's prominent capability of product R&D and excellent talents, as well as FAW president Xu Liuping's efforts. 

Partnering with internet-based EV startups is a reform, which can help refresh the entire system for state-owned automakers. In addition, the cooperation with FAW may solve BYTON's problem in vehicle manufacturing. Moreover, FAW's mature dealership and supply-chain system can also be shared with BYTON after they established partnership relations.

BYTON's B-round funding has not closed yet. Previously, foreign media reported that the total sum of its B-round funding is expected to be RMB $400 million. However, BYTON clarified that the reported sum is not accurate, and the company is expected to release the information about the funding in May.