Evergrande will produce its first electric car in June, announced the Chinese real estate giant, whose financial setbacks are causing concern in the markets.
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Real estate heavyweight in China, Evergrande drags a slate that was estimated last year at 260 billion euros.
On the verge of bankruptcy, its financial situation has since been scrutinized with concern, because its potential collapse might weigh on the growth of the Asian giant.
In addition to real estate, Evergrande has invested in tourism, digital, insurance, health and even electric cars in recent years.
The group will start production of its very first model called “Hengchi 5” on June 22, Evergrande said in a statement to the Hong Kong Stock Exchange where it is listed on Tuesday.
Founded in 2019, its subsidiary Evergrande New Energy Group aimed to revolutionize the sector and compete with the American manufacturer Tesla.
But the brand still does not market any vehicle and its stock market value has melted like snow in the sun in recent months, as Evergrande encountered serious cash flow problems.
The announcement left the markets unmoved on Wednesday: the Evergrande auto subsidiary lost nearly 10% on the stock market in the morning, on the first day of its resumption of trading.
The electric car market in China is particularly competitive.
Local builders are numerous and compete to take advantage of this outlet, supported by generous subsidies for purchases from Beijing.
So much so that the boss of Evergrande, Xu Jiayin, has said he seriously plans to transform his group into an electric champion within 10 years to get it out of its financial troubles, according to local media.
To get its head above water, Evergrande has been trying in recent months to sell assets and reduce its stakes in other companies.
The group thus announced on Wednesday that it was selling a vast real estate project in Hangzhou (east) for 3.6 billion yuan (510 million euros).
