Evergrande NEV, the electric vehicle (EV) business unit of China Evergrande Group, announced that it is currently seeking regulatory authorization from China to begin the sale of its new line of Hengchi 5 sport-utility vehicles. According to one source, a Hengchi 5 vehicle was spotted driving around inside the company’s production facility last month as Evergrande NEV prepares for its planned release.
Regulatory approval is urgently required by the EV maker, which has committed to begin widescale manufacturing early next year. Without the ability to make sales in the near future, the company warned that it may not have the ability to pay employee salaries and cover all business expenses. It was also revealed in Evergrande’s stock exchange filings that the EV maker is currently in search of new investors while still looking to perform asset sales in order to cover expenses.
The company has struggled to secure external investment, also failing to list shares in China as was previously planned. Despite such setbacks, Evergrande is still looking to push forward with its production of the Hengchi 5 model, with early 2022 being targeted as the ideal start of production. The company is currently preparing its car production facilities in China’s coastal Tianjin city for the manufacturing process.
