China’s second-largest property developer by sales Evergrande Group announced that the Hengchi 5 model of its electric vehicle unit began mass production at a facility in the northern city of Tianjin on Friday.
Reuters reported Evergrande Group’s statement that deliveries of the first electric vehicle model will begin in October. In the first half of 2023, Evergrande will begin mass-producing its second EV model. Meanwhile, its third will be in the second half of 2023.
Considering that Evergrande is the most leveraged developer in the world with over $300 billion in debt, the launch of its first electric vehicle unit is crucial for the company to come forth. It is worth noting that Evergrande’s chairman, Hui Ka Yan, has committed to transitioning the company’s principal business within ten years from real estate to the vehicle endeavor.
Having said that, the business has declared its intention to produce 1 million vehicles annually by 2025.
After postponing its large-scale production from June to the third quarter, it began accepting non-binding pre-orders for the Hengchi 5 sport utility vehicle in July. Notably, its starting price is 179,000 yuan or $25,531.31.