Chinese electric vehicle maker Aiways has announced plans to go public through a merger with U.S. special purpose acquisition company (SPAC) Hudson Acquisition Corp, in a deal that is expected to value the company at around $400 million. The move comes as a lifeline for Aiways, which halted production at its Shangrao plant last summer due to intense competition in the Chinese EV market.
The SPAC merger is set to close by the end of the year and will provide Aiways with much-needed financial support. Prior to its production halt, Aiways had been selling its U5 and U6 electric models in 16 European markets, indicating that it has existing products and operations ready for expansion, although scaling up production comes with significant costs.
Aiways’ Shangrao plant has the capacity to produce 300,000 EVs annually. The company had been in talks with investors to restart production of its existing models and develop a new, affordable car as an export-only brand focused on Europe in the short term.
According to Alexander Klose, managing director of Aiways Europe, “The new entity will be strategically positioned to capitalize on our vision and resources in the European EV market.”
Under the new structure, Aiways will be headquartered in Europe to handle sales, marketing, and finance, while manufacturing, procurement, and research and development will primarily be managed in China.
The announcement comes on the heels of a successful IPO by Chinese EV maker Zeek, a unit of Geely, whose shares rose nearly 35% above their initial offering price. Founded in 2017, Aiways counts tech giant Tencent, ride-hailing group DiDi, and battery maker CATL among its investors, all of whom will remain shareholders post-merger.
The SPAC merger represents a strategic move for Aiways to secure its position in the competitive EV market and leverage its existing presence in Europe for future growth.
