ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Electric cars in China

China Evergrande's unit starts mass production of first EV model

Hengchi 5 SUV is key to transformation of world's most indebted developer

China Evergrande New Energy Vehicle Group, a unit of the troubled land developer of the same name, will begin deliveries of its first electric car model in October.   © Reuters

SHANGHAI (Reuters) -- China Evergrande Group said its electric vehicle (EV) unit started mass production on Friday of the Hengchi 5 model at a plant in the northern city of Tianjin.

Delivery of the first electric car model unveiled last year by China Evergrande New Energy Vehicle Group will start in October, Evergrande Group said in a statement.

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, it added.

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.

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.

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

It started taking nonbinding preorders 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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more