Chinese Evergrande, in debt, produces its first car
Chinese real estate giant Evergrande launched production of its first electric car in the northern city of Tianjin on Friday, a subsidiary of the group said.
Although it is fighting for its survival with a huge debt estimated at $260 billion, Evergrande is active in several sectors and has high hopes for the automotive market.
The group “is pleased to announce that mass production of Hengchi 5 will begin on September 16,” Evergrande Auto said in a statement, adding that first deliveries will be made from October.
Founded in 2019, subsidiary Evergrande New Energy Vehicle Group has signaled its ambition to rival US automaker Tesla, giving itself “three to five years” to become the world’s “most powerful” player in the energy sector. electric car.
But the firm has lagged behind in designing and marketing its vehicles, exacerbated by significant cash flow problems, and the launch of the Hengchi 5 SUV has been repeatedly postponed.
Evergrande, one of China’s biggest developers, has been rushing to shed its assets in recent months and its financial situation has deteriorated significantly since last year.
Its problems are emblematic of the problems that ripple through China
massive real estate sector, with small businesses also defaulting on loans and others struggling to raise funds.
The giant was originally expected to unveil a restructuring plan in July, but the announcement was postponed to an unspecified date.
China’s electric car market is particularly competitive, with manufacturers scrambling to take advantage of an industry boosted in recent months by generous purchase subsidies from local governments.