China's biggest property developer says its new energy vehicles will be mass-produced in H2 next year-CnEVPost

The first six Hengchi-branded vehicles will start trial production in the first half of next year and will be mass-produced in the second half, China Evergrande NewEnergy Vehicle Group president Liu Yongjue said.

Liu made the remarks on August 27 at the interim results press conference of China's biggest property developer China Evergrande, which owns the China Evergrande NewEnergy Vehicle Group.

Liu said that he is confident Hengchi would quickly seize the market after its launch.

He said Evergrande NewEnergy Vehicle is rapidly developing three kinds of centers for the display, sales, warranty and after-sales service of Hengchi vehicles. These include 36 showroom, 1,600 sales centers and 3,000 self-built and authorised maintenance and service centers.

With such a huge sales channel and after-sales service system, the company will be able to achieve its target of selling one million vehicles in three to five years, he said.

Evergrande Group CFO Pan Darong said the group invested 14.7 billion yuan in Evergrande NewEnergy Vehicles in 2019 and 3 billion yuan in the first half of 2020.

He expects to continue to invest 2.7 billion yuan in the second half of the year and 9 billion yuan in 2021. After the car-making arms's vehicles are mass-produced and sold, the Evergrande Group will no longer have an investment.

As a result, Evergrande Group's total investment to build the vehicles will total 29.4 billion yuan, Pan said.

He added that the 6 new Hengchi vehicles have been released and the production lines in Shanghai and Guangzhou are in the commissioning stage, and he believes that the balance of cash flow and profitability will be achieved soon.