China Evergrande New Energy Vehicle Group launched its first EV, the Hengchi 5 sport-utility vehicle (SUV) set to hit the shelves from October 2022. The price of the vehicle is at RMB 179,000 ($26,663), 44% cheaper than the price of Tesla’s Shanghai-made Model Y. The company aims to deliver 10,000 units by 2023 and hopes to create a chance for Evergrande to revive its fortunes. The Chinese distressed developer ventured in the EV space in mid-2018 and has ever since gone through multiple legal hurdles alongside the property crisis which delayed the production of its cars. “The price is attractive. Evergrande is aiming for a big sales volume… If it cannot make its first production car a hit, Evergrande Auto is unlikely to survive the fierce competition”, said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service.
Evergrande’s dollar bonds were flat at 6-8 cents on the dollar.
For the full story, click here