China’s Ministry of Industry and Information Technology (MIIT) has approved the sale of two electric vehicle (EV) models for the China Evergrande New Energy Vehicle Group [0708:HK] under its brand Hengchi, as reported by Reuters on March 14. According to sources familiar with the matter, the automaker plans to begin selling the EVs as early as April 2022. In addition, Evergrande Group [3333:HK]’s Hengchi 5 sport utility vehicle model has already begun mass production.
Evergrande plans to create and mass-produce 14 new EV models by the end of 2021, with a goal of reaching 1m units in production and sales in 2025 and more than 5m units in 2035. Evergrande has been conducting acquisitions and mergers all around the world to improve its position in the EV market. For example, the group has spent EUR150m (USD164.7m) for a 20% stake in Koenigsegg, a Swedish supercar manufacturer. The two companies formed a joint venture (JV) to design and produce new-energy supercars. Furthermore, Evergrande stated in 2019 that it would invest RMB160bn (USD25.1bn) to develop a new energy vehicle (NEV) factory in Guangzhou’s Nansha District. The factory will commence operation by the end of 2020, with a first-phase annual production capacity of 200,000 units and a second-phase capacity of 1m units.