AutoBeta(AutoBeta.net)03/30 Report--

On September 13, 2018, NIO Motor listed on the New York Stock Exchange, becoming the first Chinese electric vehicle listed in the United States and the second major electric vehicle manufacturer to conduct an IPO after Tesla, mainly to raise funds.

With the sharp decline in subsidies for new energy vehicles in China, many new car-building forces are also seeking to go public to raise further funds. Xilai has blocked eight of the world's top investment banks for its IPO from serving competitors through a rare year-long non-compete clause, according to Reuters, citing sources.

Xilai hired Bank of America Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS to prepare for the IPO event. The non-compete clause forbids them from helping other competitors raise public or private funds within 12 months after the IPO of Lulai, according to sources.

The news further highlights the fierce competition among Chinese electric car makers. Sources also said that Xiaopeng, Weimar and Baiteng are also on the list.

Recently, four ministries and commissions of the state officially announced the 2019 new energy vehicle subsidy retrograde policy, with a rate of more than 50%. The transitional period is from March 26 to June 25, and the subsidy standard is appropriately reduced during the transition period. Since then, the land subsidy has been completely withdrawn and turned to subsidize the construction of infrastructure such as charging.

The fierce competition in China's new energy vehicle market, coupled with the impact of a sharp reduction in subsidies, car-building new forces are facing financial pressure, IPO listing to raise funds is also a way to continue to participate in the competition.

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