Crisis-mired China Evergrande hits electric vehicle roadblock

Embattled property group unable to bring cars to market while finances suffer

20220304 Evergrande line off

Although Hengchi 5 SUVs have rolled off the assembly line at a plant in Tianjin, the first model from China Evergrande New Energy Vehicle Group cannot be sold to drivers. (Photo courtesy of the company)

YUSUKE HINATA, Nikkei staff writer

GUANGZHOU -- China Evergrande Group's crisis has cast a dark cloud over the real estate empire's expensive bid to speed into the electric vehicle business.

The huge developer that now finds itself under a crushing debt load had intended for electric vehicles to become a medium- to long-term revenue source. A subsidiary set up to handle the venture turned out its first mass-produced vehicle in January despite not having received regulatory approval for the model.

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