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Evergrande headquarters in Shenzhen: Subsidiary builds electric car Hengchi 5
Photo:
Ng Han Guan / AP
The Chinese real estate group Evergrande has started mass production of its first electric car.
The Evergrande subsidiary New Energy Vehicle Group Ltd.
announced on Friday that the first Hengchi 5 model vehicles should be delivered in October.
A second model should be produced from the first half of 2023 and a third from the second half of 2023, it said.
Evergrande is the world's most indebted real estate developer, with debts totaling more than $300 billion.
However, the company is also active in numerous other business areas.
The management has big plans for the auto subsidiary founded in 2019: In three to five years, they want to overtake Tesla and become the world's "most powerful" player in the electric car sector.
Evergrande boss Hui Ka Yan has also announced that within ten years the car division will become the core business and the real estate business will be reduced.
According to earlier information, the aim is to produce one million vehicles annually by 2025.
Evergrande is one of the largest property developers in China.
In recent months, the group had tried to sell assets after the financial situation had deteriorated massively.
A restructuring plan was due to be presented in July, but this has been postponed indefinitely.
Sol/Reuters/AFP
