China Evergrande has announced that the subsidiary’s electric vehicle division has started commercial production of the Hengchi 5 electric vehicle at a plant in Tianjin in northern China. China Evergrande New Energy Vehicle Group Co, Ltd will begin delivering the first electric vehicle to customers in October after it was launched to the public late last year.
In addition, Evergrand will begin commercial production of the second electric vehicle in the first half of 2023, before starting commercial production of the third electric vehicle in the second half of next year.
The electric vehicle business is an important one for Evergrande. After a debt crisis that has swamped more than $300 billion, has become the most indebted real estate developer in the world.
The president of Evergrande announced that the company will make the automotive business a core business within 10 years and replace the real estate business after financial difficulties.
Evergrande had set a goal of producing 1 million cars annually by 2025.