While many people remain skeptical about low-speed electric vehicles, the investment community sees a different picture. In mid-September of this year, China Guangfa Capital Management Co., Ltd. (China Guangfa Capital) and Fujian Dechi New Energy Technology Co., Ltd. (Dechi Motors) held a strategic cooperation signing ceremony in Jiangle, Fujian. China Guangfa Capital will act as the lead investor and financial advisor for Dechi Motors, offering not only capital support but also technical assistance. This move comes at a time when the entire low-speed electric vehicle market has seen a significant drop in sales due to delayed national standards, making the capital’s involvement a timely boost.
In an environment where many are pessimistic about the low-speed electric vehicle market and its challenging regulatory landscape, investors remain optimistic about its long-term potential. This article explores the current state of inventory and investment trends within the industry.
Great Wall Motors Acquires Hebei Yujie
In mid-July, Great Wall Motors announced a joint venture agreement with Hebei Yujie Vehicle Co., Ltd. in Qinghe County, Hebei Province. Great Wall Motors plans to increase its capital investment in Yujie, initially acquiring a 25% stake, with the potential to raise it to 49%. The exact amount will be determined through valuation by independent auditors. The collaboration aims to launch a new brand under the “YUJIE Great Wall†trademark.
Hebei Yujie, owned entirely by Yujie Group, is a major player in the traditional low-speed vehicle market, particularly targeting middle-aged and elderly consumers. By 2016, the company had achieved four consecutive years of top sales in the low-speed electric vehicle sector, with over 300,000 units sold. This partnership marks one of the largest investments in the low-speed electric vehicle industry.
Loncin GM Invests in Lichi Motors
As a leading player in the low-speed electric vehicle space, Lichi Motors has attracted significant attention from investors. In April 2014, Longxin Capital invested 50 million yuan for a 20% stake. By July 2015, they increased their ownership to 51%, securing control of the company and expanding into the four-wheel low-speed electric vehicle market. This investment reflects confidence in the future of mini electric vehicles, supported by provincial policies and national trends.
Levi Electric Motors Secures Funding from Chenyi Capital
In September 2016, Levi Electric Motors debuted with its own brand, backed by Shanghai Chenxi Asset Management, a private equity fund focused on new energy vehicles, industrial automation, and the internet. Chenyi Capital saw potential in the low-speed electric vehicle market, believing it to be a "blue ocean" with strong growth potential. Unlike subsidized new energy vehicles, low-speed models have grown rapidly without external support, indicating a natural demand in the Chinese market.
Car and Home Raises 6.2 Billion Yuan in A3 Round
Founded in 2015, Car and Home is an urban intelligent transportation service provider. It is developing two products: a small SEV and a large SUV. The first SEVs will be used for time-sharing leasing in Paris before being sold directly to consumers. To meet European standards, the SEVs are designed according to the L7E specifications, allowing the company to enter foreign markets first.
In October, Car and Home partnered with Yihang Intelligent, a leader in automated driving solutions, to develop Level 4 autonomous SUVs. The company raised 6.2 billion yuan in its A3 round, led by Leo Group and other prominent investors, signaling strong confidence in its vision for the future of mobility.
Mins Capital Backs Qingxing Electric Vehicles
Qingxing Electric Vehicles, founded by former Tsinghua Automotive Group executives, focuses on affordable smart electric vehicles. It produces cars under the TS16949 automotive standard and targets third- and fourth-tier cities. Its first model features a lightweight design, charging via a 220V outlet, and a range of over 150 km, meeting basic A0-class requirements.
The pre-A round was led by Mingshen Capital, with additional support from Meihua Fund and Zero2IPO Venture Capital. Like Car and Home, Qingxing emphasizes innovation and high-quality low-end models, challenging the perception that affordability equals poor quality.
IT Amnesty Group Invests in Hengyuan Automotive
Hengyuan Automotive, based in the U.S., has gained attention from notable investors such as Zhenhua Xu, Zhou Hongyi, and Foxconn executive Gou Mingming. The company offers electric logistics vehicles tailored for urban use, using advanced materials and non-stamping techniques. Despite lower brand recognition, its focus on efficiency and practicality has attracted interest.
While several other companies like Reding, Yijia, and Tang Jun continue to attract investment, the low-speed electric vehicle sector remains dynamic. Even without clear regulatory clarity, the market continues to draw attention from both domestic and international investors.
From an investment perspective, the low-speed electric vehicle market is far from saturated. Investors see long-term potential driven by market demand and technological innovation. As Warren Buffett once said, “When others are greedy, you should be fearful; when others are fearful, you should be greedy.†This mindset may explain why so many investors are still betting on this emerging sector.
Ultimately, the success of low-speed electric vehicles will depend on how well they meet real-world needs. For now, the capital seems to believe in the future of this growing industry.
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