- The electric vehicle arm of embattled Chinese property developer Evergrande said its first EVs will roll off the production line next year.
- Tianjin’s local government said it would coordinate with financial institutions to support Evergrande and help the company achieve mass production.
- Evergrande NEV is entering an extremely competitive electric car market in China and will face upstarts such as NIO and Xping and established players such as BYD and Tesla.
GUANGZHOU, China – The electric vehicle arm of troubled Chinese property developer Evergrande said its first cars will roll off the production line next year.
The debt-ridden company said it met with suppliers and the local government in Tianjin, where it has a production base, and promised to move forward with mass production of its Hengchi-branded cars.
Shares of China Evergrande New Energy Vehicle Group were up more than 10% in morning trading, but passed some of those gains. They were about 6% higher at the lunch break in Hong Kong.
Evergrande hasn’t delivered a single vehicle to customers yet – but it has high ambitions. It previously promised annual production and sales of 1 million cars by 2025.
Tianjin’s local government said it would coordinate with financial institutions to support Evergrande and help the company achieve mass production.
Parent company Evergrande Group is struggling to pay $300 billion in liabilities. It is the world’s most indebted property developer and has already defaulted on several bond payments. There are fears that the company could default on global markets as some investors are concerned that it could have a contagion effect and damage the global economy.
Confidence in Evergrande has waned.
Last month, Evergrande NEV said it had delayed suppliers of its electric vehicle unit and suspended some projects across the group. Evergrande said it is looking for new investors.
The Chinese firm said it has tested various models of its Hengqi car over the year.
But the automaker is entering an extremely competitive electric car market in China and will face upstarts like Nio and Xpeng and established players like BYD and Tesla.
US-listed start-up Xpeng said on Monday that it has produced 100,000 cars six years after the company’s launch.