Wuhu-based Chery Automobile, China’s largest automaker, has raised Rmb2.9bn from Chinese private investors to fund its development and expansion plans. Much of the money will be used in its clean energy programme and a planned new sedan plant, said company spokesman Jin Yibo.

The Wall Street Journal reported that Chery raised the capital by selling a 20 per cent stake to the investors, though Chery refused to confirm the amount transferred.

Chery aims to rank among the world’s top 10 automakers, and the current industry slowdown provides it with a good opportunity to boost development by raising capital, added Jin.

In December 2008, Chery signed an agreement with Export-Import Bank of China for loans totalling Rmb10bn to be used for overseas expansion.
The company sold 42,935 cars in April, a monthly record, accounting for 11.45 per cent of the total local brand passenger cars sold in China. It aims to sell 419,000 vehicles in 2009, up from 356,000 units last year.

The auto maker is well known for its cheap subcompact models. However, this year it has started to branch out into the higher-end sedan market with a new model called the Riich.