Real estate developer Evergrande’s automobile arm announced on September 16 that its Hengchi 5 model has started mass production in Tianjin and deliveries will begin in October. The new energy vehicle brand will also accelerate the development of other models.
Last December 30, the first Hengchi 5 rolled off of the production line while on July 6, global pre-sales began. Evergrande Auto’s data showed that less than 15 days after the start of pre-sales, 37,000 vehicles were ordered.
In order to build confidence in the EV brand, all down payments will be made under the supervision of local departments in Tianjin. Buyers need only pay the full amount once the car is delivered, and are allowed to return the vehicle within 15 days.
Evergrande Auto said that the mass production of the Hengchi 5 is an important milestone, and that it will ensure the mass production and future R&D. The Hengchi 6 will roll off the assembly line at the end of this year and go into mass production in the first half of next year while the Hengchi 7 will roll off the production line in the first half of next year and go into mass production in the second half of next year. At the same time, the company will accelerate the development of its Hengchi 1 and Hengchi 3 models.
Regarding its automobile manufacturing process over three years, Evergrande Auto said that the group has brought in more than 2,000 international top scientific research specialists in order to establish several research institutes, including one dedicated to batteries. The company is cooperating with Magna, a Canadian parts manufacturer for automakers, and EDAG, an independent engineering service provider, and others to jointly develop EV models.
At present, Evergrande Auto posseses advanced core technologies in the fields of vehicle manufacturing, chassis architecture, intelligent connectivity, power batteries and autonomous driving. It has obtained 2,483 authorized patents and is applying for another 3,413 patents.
During the pre-sale period of the Hengchi 5, market rumors swirled that Evergrande Auto will be acquired. On August 18, Evergrande Auto’s President Liu Yongzhuo denied the acquisition rumor. He said that the company has been actively introducing strategic investors, adding that both local governments and a number of enterprises have expressed investment intentions. On September 16, Chinese automotive maker GAC Group denied a rumor that it may acquire Evergrande Auto.
Evergrande Auto also announced its stock operation resumption progress. Its shares have been suspended from trading since April 1 and is required to publish its financial results in the first half of this year on or before August 31. However, the relevant audit and review work is still in progress. The company said it would unveil the report as soon as is practicable, in order to resume trading.