Evergrande starts mass production of EVs

Evergrande Hengchi 5 model

Evergrande said its electric vehicle (EV) unit started mass production of the Hengchi 5 model at a plant in the northern city of Tianjin.

Evergrande said delivery of the first electric car model unveiled last year will start in October.

Evergrande will start mass production of its second EV model in the first half of 2023 and a third one in the latter half of next year.

The EV unit is key for Evergrande, the world’s most indebted developer that has been reeling under more than $300 billion worth of liabilities.

Evergrande Chairman Hui Ka Yan has vowed to shift within 10 years the group’s primary business from real estate to the automobile venture, which has itself struggled for capital.

Evergrande previously said it aimed to make 1 million vehicles a year by 2025.

Evergrande started taking non-binding pre-orders for the Hengchi 5 sport-utility vehicle priced from 179,000 yuan ($25,531.31) in July after delaying mass production from June to the third quarter.