Evergrande Auto, the automotive arm of embattled Chinese property developer Evergrande Group, has promised that the first model of its Hengchi brand will roll off the production line in 2022.
The name ‘Evergrande’ has been hitting headlines for all the wrong reasons lately, as it has become China’s most indebted property developer with more than $US300 billion worth of liabilities.
One of Evergrande’s many subsidiary businesses is Evergrande New Energy Vehicle Group, also known as Evergrande Auto, which is the result of a multi-year acquisition of electric vehicle companies Faraday Future and NEVS (National Electric Vehicle Sweden). In 2020, Evergrande Auto announced the launch of its electric vehicle marque, Hengchi.
In a meeting held on Monday between Evergrande Auto management and executives from nearly 200 strategic partners including Bosch and Hitachi, Evergrande Auto president Liu Yongzhuo promised that his company had “started a three-month battle to ensure that Hengchi’s first car will roll off the production line” early in 2022.
It’s been a rough year for Evergrande Auto. In just the last few months, Evergrande Group has contemplated selling off its automotive subsidiary, because it faced a “serious shortage of funds” that meant it might not be able to meet its financial obligations, including paying its suppliers.
This led to the decision in late-September to abandon plans to list its EV business on the Shanghai Stock Exchange.