'The debt problem has not been resolved, it is a bit surprising that Evergrande released an electric car.'
Evergrande China's subsidiary, New Energy Vehicle Group is ready to conquer the electric car (EV) industry by starting to distribute its vehicle models to customers.
Through the company's official account on Wechat, New Energy Vehicle is understood to have started sending the Hengchi 5 model to the first 100 customers starting last Saturday.
As you know, the subsidiary launched the production of the vehicle last month at the Tianjin manufacturing site and aims to produce 1 million vehicles by 2025.
Evergrande, which is surrounded by off-shore and on-shore debt controversies due to failure to pay, was imposed default status at the beginning of this year.
The situation has also sparked chaos in China's real estate sector as Evergrande owns the majority of housing projects there and it has forced government intervention.
At that time, President Xi Jinping himself forced several state-owned companies to buy part of Evergrande's holdings to resolve the company's on-shore debt issue.
Back to the original news, sources say Evergrande plans to make the EV industry the core of their new business.
The company is also said to be doubling the production efforts of the 2nd EV model to be completed as early as mid-2023 and fully completed next year.
