Evergrande New Energy Vehicle Group (Evergrande NEV), the electric vehicle unit of China’s Evergrande Group, has successfully resumed production at its Hengchi Auto plant in Tianjin after a temporary suspension. The plant, which halted operations for a month due to financial challenges, resumed full-scale production on May 23, as confirmed in an official WeChat post by Hengchi.
During a recent visit by officials from Tianjin Binhai New Area on May 29, it was observed that the production lines were running smoothly, and thousands of workers were diligently engaged in their tasks. This development signifies a positive step forward for Evergrande NEV and Hengchi Auto, indicating their commitment to overcoming the obstacles they faced.
Liu Yongzhuo, President of Hengchi Auto, expressed the company’s determination to accelerate the production and delivery of their flagship model, the Hengchi 5, while simultaneously advancing the development of future models. The resumption of operations at the Tianjin plant allows them to focus on meeting customer demands and progressing their ambitious plans.
Previously, on March 23, Evergrande NEV announced cost-saving measures to concentrate financial resources on supporting the mass production of the Hengchi 5. This initiative involved job cuts at their Swedish subsidiary, National Electric Vehicle Sweden AB. However, the announcement also cautioned that unless additional liquidity could be secured, there would be a risk of production shutdown.
In an update on April 24, Evergrande NEV stated that over 900 units of the Hengchi 5 had already been delivered to consumers. Nevertheless, due to financial constraints, production of the model at the Tianjin plant was temporarily suspended. The group expressed its intention to resume production in May, showcasing their determination to overcome the challenges and continue delivering their electric vehicles to the market.
The Hengchi 5 is Hengchi Auto’s first mass-produced model, with deliveries commencing on October 29, 2022. Currently available in a single version starting at RMB 179,000 ($25,240), the Hengchi 5 represents an important milestone in Evergrande NEV’s electric vehicle lineup.
It is worth noting that trading of Evergrande NEV’s shares on the Hong Kong Stock Exchange has been suspended since April 1, 2022. The resumption of trading remains pending, and an official date has yet to be determined. However, the recent resumption of production at the Hengchi Auto plant signifies a step in the right direction for Evergrande NEV, demonstrating their commitment to overcoming challenges and sustaining their presence in the electric vehicle market.
