Evergrande’s EV unit says it receives pre-orders for more than 37,000 Hengchi EVs

Business

China Evergrande New Energy Vehicle Group Ltd (0708.HK) said on Wednesday it had received non-binding pre-orders for more than 37,000 units of its first model Hengchi 5.

Pre-orders for the Hengchi 5 have far exceeded the company’s expectations, president Liu Yongzhuo said at an online event.

The electric vehicle (EV) unit of Evergrande started to accept non-binding pre-orders two weeks ago, with buyers paying 1,000 yuan ($148.13) as a deposit for the pure-electric sport-utility vehicle priced from 179,000 yuan.

The EV unit also said it will start delivering the first batch of 10,000 Hengchi 5 cars from Oct. 1, 2022 to March 31, 2023. Buyers will be fully refunded if they change their minds within 15 days after pickup.

Mass production of the Hengchi 5 has been delayed to the third quarter from June, according to company executives’ recent statements, while its parent Evergrande Group (3333.HK) has been reeling under more than $300 billion worth of liabilities.

Evergrande Chairmen Hui Ka Yan vowed within 10 years to shift the group’s primary business from real estate to the automobile venture, which has itself struggled for capital.

The company previously said it aimed to make 1 million vehicles a year by 2025.

($1 = 6.7510 Chinese yuan renminbi)