Beijing Chehejia Technology, an electric vehicle start-up, raised 780 million yuan ($120.45 million) from eight investors including Shenzhen-listed Leo Group Co and Shenzhen Chenghong Assets Management Co, according to a press release the company sent to the Global Times on Tuesday.

Since it was founded in July 2015, Chehejia has raised more than 2.5 billion yuan.

"The money we raised this time will be mainly used in factory and production line construction as well as research and development," founder and CEO Li Xiang told the Global Times on Tuesday.

This is the third company Li has founded. He set up IT information provider pcpop.com in 2000 and automotive website autohome.com.cn in 2005.

Chehejia aims to produce two kinds of vehicles: smart electric vehicles (SEVs) and sport utility vehicles (SUVs) to satisfy almost 90 percent of market demand, according to Li.

Chehejia's electric vehicles won't rely on charging points as they would use detachable batteries which consumers can take home for charging, Li noted.

A vehicle factory for Chehejia is under construction in Changzhou, East China's Jiangsu Province, and it's expected to open this year, according to a filing Leo Group sent to the Shenzhen Stock Exchange on Tuesday.

Leo Group invested 350 million yuan in Chehejia during this round of funding. Leo Group holds an 11.75 percent stake in Chehejia, which is valued at about 3 billion yuan.

Chehejia is expected to introduce its SEVs in the second half of 2017 and SUVs in the second half of 2018, said the filing.

"Chinese electric vehicle markets are still in the accelerated growth phase as the nation bids to combat pollution and save energy," Qiao Shengpu, a partner and general manager of the auto department at Adfaith Management Consulting, told the Global Times on Tuesday.

"Many investors see a good future for the electric vehicle market in China," he noted.

Traditional automakers like SAIC Motor, FAW Group, Dongfeng Motor Corp, BYD and Geely have also entered the field.

"It's very hard to compete with these traditional automakers. Newcomers have to be creative to win market share," said Qiao. "For instance, it will be a selling point if [Chehejia's] electric vehicles don't need to rely on charging points."

China's production of new-energy vehicles (NEVs) increased by 144 percent year-on-year in January to 16,100 units, figures from the Ministry of Industry and Information Technology showed in February.

The promotion of NEVs can't last without the government's support particularly during the preliminary stage, noted Qiao. China has offered many measures to promote the development of NEVs including tax exemptions and subsidies for purchases.

Professional talent is also needed to develop NEVs, noted Li.