Cavan Auto, a new energy commercial vehicles maker majority-owned by Chinese auto company Foton, has completed its Series Pre-A funding round at over 1.2 billion yuan ($167.5 million), just a few months after signing its first batch of clients from Europe to kick-start its global foray.
Beijing-headquartered Cavan Auto specialises in the production of pure electric vehicles (EVs) and hydrogen fuel cell-powered new energy vehicles (NEVs) for commercial use in the logistics sector, primarily urban logistics, inter-city transportation, and truck line logistics.
Its Series Pre-A round attracted new investors, including the state-owned 10-billion-yuan ($1.4 billion) Beijing Green Energy and Low Carbon Industry Investment Fund.
Guotai Jun’an Innovation Investment and CICC Capital also joined the round.
Foton and other existing shareholders, such as BAIC Capital, and German automotive supplier Robert Bosch-owned Boyuan Capital and Robert Bosch Venture Capital, continued to support Cavan Auto in the latest round.
The company is looking to bring its eco-friendly logistics vehicles to the global market, leveraging China’s world-leading green vehicle expertise and manufacturing strengths.
China’s NEV exports have shown strong growth this year despite continued challenges in tariff negotiations with the US and the European Union (EU). Its NEV exports are undergoing a transformative phase of development with a strategic focus on the Middle East and developed economies, especially markets in Western Europe and Asia.
From January to May, the country exported 1.16 million NEV units, representing a 33% increase year-on-year. In May, NEVs accounted for 43% of its total vehicle exports, according to a report from the China Passenger Car Association (CPCA).
The new financing will allow Cavan Auto to invest further in R&D, develop industry resources and partners, and digitise its business operations. Proceeds from the new round also replenished its working capital.
The company was jointly launched in late 2022 by Foton, alongside Boyuan Capital and Robert Bosch Venture Capital, hydrogen fuel cells developer SinoHytec, and a wholly-owned subsidiary of Chinese state-owned automaker BAIC Group’s investment arm.
As the biggest shareholder, Foton held a 65% stake in Cavan Auto as of January, according to a stock exchange filing by Shanghai-listed Foton.
