(Yicai Global) March 18 -- GAC Group’s new energy vehicle unit GAC Aion, which could get listed as early as this year, has completed its CNY2.6 billion (USD404 million) Series A round of funding, introducing state-backed investors while boosting its talent development.

GAC Group will hold around 93 percent of GAC Aion's equity after the fundraiser, the Guangzhou-based carmaker announced yesterday. Three new investors, including state-owned conglomerate China Chengtong Holdings Group will collectively have about 2 percent of the sub-brand's shares.

Moreover, GAC Aion rolled out an incentive plan for key staff members. Participants will have about 4.6 percent of the company's equity, according to the same statement.

Established in 2017, GAC Aion launched its first model, sport-utility vehicle Aion LX, in April 2019. After that, it has debuted several others. Last year, the firm sold 124,000 units in total, exceeding the 100,000 mark for the first time.

The parent aims to spin off the electric vehicle offshoot for a listing. After the equity incentive program is finished, GAC Aion will speed up its initial public offering process and be listed on Shenzhen's ChiNext market as early as this year, according to people familiar with the matter.

The incentive program covers almost 680 technical staff members and managers, or about a fifth of the firm's total headcount. Moreover, nearly 120 core technical employees at the research and development center will be joining the program, or almost 3 percent of all working at the center, Yicai Global learned.

The goal is to attract and retain star workers. The electric vehicle firm aims to form a community of interests among key talents, including the company’s R&D backbone and senior management, said Xiao Yong, deputy general manager.

"The talent war is becoming increasingly fierce so car manufacturers tend to scramble for talent," said Xiao. GAC Aion is often seeing information about rivals offering high pay to lure professionals, he added. Skilled staff is one of the key factors for corporate success, according to the deputy GM.

A new auto market pattern will be formed in the next eight to 10 years, and a maximum of five manufacturers will win and become the new mainstream brands, said Xiao. This is why GAC Aion needs to intensify its efforts to stay ahead of the competition, he added.

Introducing new strategic investors should help the car firm become increasingly independent from its parent and increase its competitiveness, Xiao concluded.

Editors: Tang Shihua, Emmi Laine, Xiao Yi