WM Motor Technology Co. Ltd., the Chinese EV (electric vehicle) startup, will get a considerable injection from a cluster of sponsors headed by Baidu Capital. Baidu Capital is a unit of Baidu Inc., the Chinese internet search company. This data was given to the media by chief executive and founder of WM Motor.
Freeman Shen exited Zhejiang Geely Holding Group Co. Ltd., the Chinese automaker, to set up WM Motor. He claimed that the investors also comprise Amiba Capital, the Chinese venture capitalist; Baidu Inc.; and Susquehanna International Group LLP, the U.S. trading company. In a telephone meeting this week with the media, Shen refused to talk about the size of the spending, claiming that the automaker is expected to make a declaration as soon as possible.
Two sources well known with the issue claimed to the media that the figure was in the Billions Yuan. The auto manufacturer has lifted almost about 12 Billion Yuan (almost $1.81 Billion) at the time of its 3-year life span, Shen claimed. “The complete project almost certainly requires almost 20 Billion Yuan, so we have a little more financial support to gather,” he claimed. WM Motor is one of many hugely Chinese-supported EV companies gambling on the advantages of domestic production to vie with EV standard of Tesla Inc. Tesla has to import vehicles from the U.S. and pay a 25% import tax on them.
Tesla has talked about the requirement to set up domestic manufacturing but has yet to declare any plans. Other EV startups of China comprise Singulato Motors and Future Mobility Corp. Ltd. in addition to its Byton brand. They anticipate increment in the demand for their vehicles owing to a government thrive for supposed NEVs (new energy vehicles). All-electric vehicles from WM Motor and others are not planned to arrive in China until 2018.