MaKe | Air Suspension Supplier KH Automotive Technologies Co., Ltd. Raises Over 500 Million Yuan in Series B, Led by Source Code Capital

源码资本·November 14, 2022·0·0

#MaKe Key Updates from Source Code Capital and MaHui Members

Recently, KH Automotive Technologies Co., Ltd. (hereinafter referred to as "KH Automotive" or "KH") announced the completion of a 510 million RMB Series B equity financing round. The round was jointly led by China Reform Holdings, CRRC Capital, Source Code Capital, and Shenzhen Capital Group, with additional participation from Yonghua Investment, Huoyan Capital, Shanshan Venture Capital, and others.

KH Automotive is China's first domestic supplier of passenger vehicle air suspension systems for front-loading OEM applications. In June 2021, it successfully developed and began supplying air suspension systems for the Voyah Free, ending the history of China having no domestic front-loading air suspension supply resources. Prior to this, no mass-produced passenger vehicle globally had been equipped with an air suspension system supplied by a domestic Chinese company. To date, KH Automotive has delivered over 60,000 air suspension systems or air spring assemblies for three models — the Li Auto L9, Voyah Free, and Voyah Dreamer — and has received letters of intent for air suspension products from 13 mainstream automakers covering more than 30 vehicle models. Its volume delivery and letter-of-intent numbers are far ahead of any domestic competitor.

Li Auto L9 equipped with KH Automotive air spring assembly

Looking back at the company's financing history, KH Automotive completed a Pre-A round led by Legend Star in February 2021, followed by a Series A round in September 2021 with exclusive investment from Xiaomi Industrial Investment.

Xin Lei of Source Code Capital commented: "Electronically controlled air suspension is an emerging category seeing rapidly increasing penetration amid the trend of domestic EV brands moving upmarket. It combines both comfort and safety characteristics, delivering a superior experience for consumers. Drawing on years of accumulated deep expertise in vehicle chassis and whole-vehicle dynamics, KH Automotive has insisted on ground-up R&D and tackling hard technical challenges. It was the first to deliver reliable, high-quality air suspension products for several leading models on the market, and has already secured a strong market position. Moreover, the team has a clear long-term roadmap for technology iteration and is steadily executing on a vertically integrated strategy across the category. We believe the company is very well positioned to grow into a leading component supplier for this new category, riding the wave of domestic EV growth."