Aiways secures $400m valuation through US SPAC merger

The article reports that Chinese electric vehicle (EV) startup Aiways is set to go public through a merger with a US special purpose acquisition company (SPAC), called Hudson Acquisition Corp, with the deal expected to value the company at around $400m. This move provides a lifeline for Aiways, which halted production at its Shangrao plant last year due to the intense price war in the Chinese EV market that has negatively affected automakers’ profitability. The SPAC merger is anticipated to close by the end of the year. Prior to experiencing financial difficulties, Aiays had been selling its U5 and U6 electric vehicles in 16 European markets, and has the capacity to produce 300,000 EVs annually at its Shangrao plant. Aiways intends to prioritise sales, marketing, finance, and research and development in Europe, while manufacturing, procurement, and R&D will primarily be handled in China. This strategic move will enable Aiways to better capitalise on its resources in the European EV market. Notably, the announcement coincides with the strong debut of Chinese EV maker Zeekr, which is a subsidiary of the same Chinese conglomerate, Evergrande, that owns Aiways. Aiways’ investors include Tencent, Didi Chuxing and CATL, all of whom will continue to hold shares following the merger. The news follows hot on the heels of similarly buoyant news regarding another Chinese EV manufacturer, Zeekr, whose shares rose almost 35% during its initial public offering (IPO) in the US – a significant milestone for the China-based company, which was the first major IPO by a Chinese business in the US since 2021.