This announcement is an important milestone for Evergrande New Energy Vehicle Group, which is under the unit of Chinese property developer, Evergrande Group.
Evergrande chairman Hui Ka Yan said in 10 years he would shift the group’s main business from real estate to car business, as well as seek to raise capital.
Mass production of Hengchi 5 itself has been postponed until the third quarter starting this June due to funding obligations worth more than 300 billion United States (US).
Evergrande New Energy Vehicle has an ambitious target of making 1 million vehicles by 2025.
Evergrande is currently working on a debt restructuring plan, with the unit’s stock having been suspended from trading since April. It is currently awaiting publication of the audited annual results for the 2021 financial year.
The manufacture of electric vehicles is seen as an attempt to secure external investment and has been negotiating with potential buyers for some of its assets.