The beginning of autumn turned out to be unsettling for the new Chinese electric vehicle brand Hengchi. Parent development company China Evergrande, which owns the electromobility division
The company’s management had to work hard to ease the debt pressure. For this it was necessary to sell part of the assets and business units. One of the last assets to be sold was the British electric drive company Protean. Part of the proceeds from the forced sales of funds was used to capitalize Hengchi and settle accounts with component suppliers, including Bosch, Antolin, Hitachi and Hutchinson.
Today in the official Chinese catalog
It is not yet clear which of the company’s three factories, in Guangzhou, Shanghai or Tianjin, will start production. Previously, the company presented 9 models out of 14 planned, and currently, according to MIIT, the Hengchi 5 and Hengchi 6 models are ready for mass production. Evergrande Auto jumped more than 12%.
According to some leaks from Evergrande Auto, pre-production of #hengchi 5 is already in progress. We can say that it is very timely. There is no time to waste here, but it is necessary to offer the buyer a finished product as soon as possible.
In our previous articles, you learned how fast the electric vehicle market in China is progressing. And it is during these months that a new product must be shown and a stake in the market must be staked out.
According to #evergrande CEO, the automotive division should form the core of the Group’s future: «
That is, we see a strategic reorientation of the entire company. And it is the electromobile production that will allow it to have a stable cash flow, profit, which means that it will gradually pay off the debts that are impending from the development business. I believe that investors understand this too. And if they even get their money, and with interest, then they will not initiate processes that could undermine the capabilities of Evergrande.
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