CHJ Automotive is seeking to raise $300 million to $500 million in its latest funding round, Reuters said citing two people with direct knowledge of the matter. The money will be mainly used to finance mass production of CHJ's first consumer model, Leading Ideal One, as well as for research and development.

The four-year-old company obtained a manufacturing license last year and plans to start mass production of Leading Ideal One, a seven-seat SUV, in its wholly-owned plant in Changzhou. The model, priced at 328,000 yuan ($48,703.99), will roll off the assembly line in the fourth quarter of this year, according to CHJ's website.

The company opened five retail centers in a few Chinese cities in May, with eight more expected to open in the third quarter, which has raised demand on cash flow as well.

CHJ has previously raised around 6 billion yuan from investors. Its main backers include venture capital firm Matrix Partners China, State-owned Shougang Fund and conglomerate Yintai Group.