Evergrande Auto, the electric vehicle company owned by Chinese real estate giant Evergrande Group, recently broke ground on a production site in Guangxi, southern China, marking the latest step in the company's aggressive goals in the EV sector.
The total investment in the first phase of the project is RMB 5 billion ($773 million), with an annual investment of RMB 1.2 billion planned, according to a report in Guizhou Daily.
(Source: Guizhou Daily)
Evergrande Auto will build new stamping, bodywork and painting workshops, as well as ancillary buildings and related auxiliary production facilities at the site.
The overall project is expected to be completed in 2024 and will be used for the production of models including sedans and coupes.
(A rendering of the project.)
In 2018, Evergrande Group became the second-largest shareholder of China Grand Auto, a leading car dealership in China.
Evergrande originally chose to build a car with Faraday Future, but changed its plans due to the debt crisis of the latter's founder Jia Yueting.
Evergrande Group took a stake in Swedish electric car maker NEVS in January 2019 and acquired the latter in June last year, renaming it Evergrande Auto.
Nine of the 14 Hengchi models designed by Evergrande Auto have been announced, but none have yet begun mass production. The company aims to sell more than 1 million vehicles by 2025 and more than 5 million by 2035.
Evergrande Group has planned vehicle production sites in Guangdong, Shanghai, Tianjin and Liaoning, with a total capacity of more than 1 million vehicles in the first phase. Two of the production bases will be completed within 2020 and will start production this year.
At present, Evergrande's two production bases in Shanghai and Guangzhou have already started trial production, and the first Hengchi brand model, Hengchi 1, is scheduled for trial production in the first half of this year, with a view to mass production in the second half of the year, the company previously said.
On June 6, Evergrande Auto announced the launch of summer calibration tests for five Hengchi vehicles at its Shanghai development base.
The test will take place in Turpan, Xinjiang, where the average summer daytime temperature is above 40°C. The Hengchi 1, Hengchi 3, Hengchi 5, Hengchi 6 and Hengchi 7 vehicles will undergo a series of extreme tests here.
The test will fully verify the reliability and durability of Hengchi's battery, motor and electric control system, thermal management strategy, braking performance, battery performance, air conditioning system and interior and exterior components.
In the fourth quarter of this year, the Hengchi series will start trial production, with volume deliveries beginning next year, said Evergrande Auto President Liu Yongzhuo at the launch ceremony.