What’s new: Debt-ridden China Evergrande Group’s carmaking unit has won regulatory approval to sell two electric vehicle (EV) models, according to a document (link in Chinese) issued by the Ministry of Industry and Information Technology (MIIT).
The two electric passenger vehicle models are under the brand name Hengchi (恒驰) and produced by Hong Kong-listed China Evergrande New Energy Vehicle Group’s factory in North China’s Tianjin.
In the document issued last week, the MIIT listed 125 new EV models, including the two Evergrande cars, as meeting national standards for “promotion and application” which means they can benefit from government subsidies.
The context: Evergrande has bet on EVs as a future growth point, as it suffers a liquidity crisis in its core business of real estate development.
The company declared in 2018 that it would fully enter the new-energy vehicle business, and, in 2019, it announced a plan to invest about 45 billion yuan ($7 billion) over three years. However, three years later it has failed to sell a single EV, with some analysts saying its carmaking endeavor is in part a way to raise funds for its cash-hungry parent.
In January, Evergrande announced that the first model of its Hengchi 5 SUV had rolled off the production line at its Tianjin plant.
Related: In Depth: Evergrande Auto Races to Convince Investors It Can Make a Car
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)
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