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Evergrande Health Forges Ahead With Six New Electric Vehicles

By Heather Mowbray / Aug 05, 2020 05:03 PM / Business & Tech

In June 2019, National Electric Vehicle Sweden, majority owned by Evergrande, started mass production of its first electric vehicle — the NEVS 9-3 EV, which was shown in the northern Chinese municipality of Tianjin in December 2017. Photo: IC Photo

In June 2019, National Electric Vehicle Sweden, majority owned by Evergrande, started mass production of its first electric vehicle — the NEVS 9-3 EV, which was shown in the northern Chinese municipality of Tianjin in December 2017. Photo: IC Photo

On August 3, Evergrande Health, a subsidiary of real estate conglomerate China Evergrande, announced the release of six pure electric vehicles, with the first being launched in the second half of next year. Initially due for release in the first half of 2020, the Hengchi series labeled 1 to 6 will include a sedan, an SUV, and a seven-seater van.

With plans to become the world’s largest new-energy vehicle group within three to five years, Evergrande seems to have changed tack since its first electric vehicle plans were hatched in 2018 under the Guoneng Automobile umbrella, formed from an acquisition.

“Evergrande had nothing to make cars with” Evergrande CEO Xu Jiayin said of his “car empire scheme” at an Evergrande New Energy Vehicle summit in November 2019, but went on to say “we’ve bought all the technology and companies that we can lay our hands on.”

Since 2019, China Evergrande has spent more than 20 billion yuan on developing an entire new-energy vehicle industry chain, complete with vehicles, batteries, motors and power systems. The company recruited former BMW designer Anderson Warming as one of three prestigious consultants.

According to Evergrande Health Vice President Peng Jianjun, the cars have now entered prototype testing.

Evergrande aims to complete its production bases in Songjiang in Shanghai and Nansha in Guangzhou this year, each with production capacity of 200,000 vehicles. So far the Nansha production line has not been assembled and the models it will produce have not been set.

On July 27, the company issued an announcement stating a board recommendation that Evergrande Health be renamed China Evergrande New Energy Automobile Group Co., Ltd., or Evergrande Automobile for short now that their focus is entirely on new energy vehicles.

Contact editor Marcus Ryder (marcusryder@caixin.com)

Related: Tesla Gaining Ground Pushes China Electric Vehicle Bubble Toward Bursting


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