Even as the parent firm tries to stay afloat under a liquidity crisis that has crippled manufacturing, China Evergrande Group’s electric vehicle arm stated it still aimed to have its inaugural Hengchi-branded vehicle ready for shipment early in 2022. According to Liu Yongzhuo, who works as the president of the Evergrande New Energy Vehicle company, the manufacturer will ensure that its first electric vehicle is constructed and assessed at its Tianjin plant and ready for public sale early next year with the assistance of local government backing. According to him, the company, also identified as Evergrande Auto, has undertaken a three-month effort to address its issues.

Evergrande Auto executives met with local officials and partners in Binhai, a Tianjin district, as per a report posted on the company’s website late Monday. The Communist Party leader of Tianjin’s Binhai High-Tech Area declared at the meeting that the local government is going to provide the required assistance. The announcement comes as the firm – which once had high dreams of becoming the world’s largest electric car maker – struggles with production halts and erratic stock market price changes, while its parent corporation struggles to deal with approximately US$300 billion in liabilities.

Investors are concerned about the impact of the Evergrande problem on the stability of China’s property market development and economic growth. Evergrande is one of China’s leading property developers. “The destiny of the Evergrande New Energy Vehicle Group and the hi-tech district are inextricably linked. ” We must face the challenges, seek opportunities, and provide assistance in financing policy, review, and coordination among relevant departments and financial firms to assist the company in stepping out of this difficult situation as quickly as possible and assisting Evergrande in achieving its goal of mass production as soon as possible,” said Xia Qinglin, district Communist Party chief.

Evergrande Auto recently discontinued some of its electric vehicle operations due to a lack of payment from suppliers. Even as its Shanghai auto production lies idle due to its parent’s debt troubles, it has been seeking to obtain additional money while employing share option incentives to retain talent on board. The carmaker has yet to deliver a single-vehicle, despite temporarily surpassing Ford Motor in market capitalization in February after obtaining US$1.3 billion (HK$10 billion) in a top-up stock issue in Hong Kong a month earlier.

Because of the cash crunch, it has ceased paying nearly all of its suppliers and several of its employees, but current employees have been informed to get the assembly plant ready to build the first model. As part of its quest for worldwide dominance, Evergrande Auto set a high aim of producing a million electric vehicles per year by 2025. It set an objective of delivering 100,000 pieces in 2022 earlier this year before the problems spiraled out of control.

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