On April 24th, Evergrande issued an announcement saying that after its subsidiary Evergrande Automobile delivered 900 vehicles, due to insufficient funds, the Tianjin factory suspended the production of Hengchi 5.
Evergrande had previously suspended other factories and concentrated resources on production at the Tianjin factory. The suspension of production at the Tianjin factory this time means that Hengchi has announced the suspension of production. However, officials say production is scheduled to resume in May 2023.
According to public information, Evergrande Auto was formerly known as Evergrande Health, which was originally responsible for operating China Evergrande’s big health business. In 2019, Evergrande entered the field of new energy vehicles, and Evergrande Health changed its name to Evergrande Auto. In this announcement, Evergrande Auto also plans to package and sell its 47 Health Valley projects to Evergrande at an agreed price of 2 CNY, and at the same time transfer 24.789 billion in debt.
In August 2020, Evergrande Automobile Group released the first six models of Hengchi simultaneously in Shanghai and Guangzhou. Hengchi 1, Hengchi 2, Hengchi 3, Hengchi 4, Hengchi 5 and Hengchi 6 were officially unveiled, covering Passenger car models such as sedans, coupes, SUVs, MPVs, and crossovers. Among them, Hengchi 5 will officially roll off the Tianjin factory in early 2022, and the other 5 planned models have not been disclosed. According to the information disclosed by Evergrande Automobile, as of April 24, Evergrande Automobile has delivered more than 900 units of Hengchi 5 to customers.
In November 2019, Xu Jiayin, chairman of the board of directors of Evergrande Group, made a bold statement that by 2025, the annual production and sales will exceed 1 million vehicles, and by 2035, the annual production and sales will exceed 5 million vehicles. Evergrande Automobile will become the largest and most powerful automobile in the world The strongest new energy vehicle group.