Evergrande’s Hengchi 5 electric SUV rolls off Tianjin plant after much delay, a key step in transforming the world’s most indebted developer

The Hengchi 5 all-electric compact sports-utility vehicle (SUV) has a driving range of about 700 kilometres (435 miles) on a single charge

The model, priced at less than 200,000 yuan, is cheaper than the 300,000-yuan price point where Tesla’s fiercest Chinese competitors compete at

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Screen capture of the launch of the Hengchi 5 all-electric compact sports-utility vehicle by China Evergrande Group’s unit Evergrande New Energy Vehicle. Photo: Weibo

Published: 7:30pm, 13 Jan 2022

China Evergrande Group’s first electric vehicle rolled off the assembly line on Wednesday, an important step for the world’s most indebted property developer as it doubled down on its biggest cash-burning bet to transform itself.

The Hengchi 5 all-electric compact sports-utility vehicle (SUV), with a driving range of about 700 kilometres (435 miles) on a single charge, is ready for delivery after coming off the assembly in Tianjin, Evergrande New Energy Vehicle said.

The model, priced at less than 200,000 yuan (US$31,440), is cheaper than the 300,000-yuan price point where Tesla’s fiercest Chinese competitors NIO, Xpeng Motors and Li Auto compete at. Hengchi 5 may also offer itself as a substitute for compact SUVs powered by internal combustion engines (ICEs) like Audi’s Q3 and BMW’s X1.

“If the Hengchi 5 vehicles sell well, it will be a ray of hope for Evergrande after months of efforts to keep its businesses afloat,” said Eric Han, a senior manager with Shanghai-based business advisory firm Suolei. “It was an important step taken by Evergrande to wade through its funding crisis.”

The Hengchi 5 all-electric compact sports-utility vehicle (SUV) by China Evergrande Group’s unit Evergrande New Energy Vehicle rolled off the assembly line in Tianjin on January 12, 2022, the company said. Photo: Weibo

The roll-out of the much-delayed SUV bookmarked more than a year of anxious wait for Evergrande’s shareholders, who poured HK$30 billion (US$3.85 billion) – on top of an initial public offering – into the company to fund founder Hui Ka-yan’s aspiration to “beat Tesla” in the world’s largest market for electric cars. The company missed its second-half 2021 launch target set a year earlier.

Hui, also known as Xu Jiayin in China, is betting on electric vehicles – a key part of the Made in China 2025 industrial master plan and China’s 2060 carbon neutrality pledge -to diversify the business of this real estate empire, with more than US$300 billion in liabilities.

Evergrande’s Hengchi 5 electric SUV rolls off Tianjin plant after much delay, a key step in transforming the world’s most indebted developer

The Hengchi 5 all-electric compact sports-utility vehicle (SUV) has a driving range of about 700 kilometres (435 miles) on a single charge The model, priced at less than 200,000 yuan, is cheaper than the 300,000-yuan price point where Tesla’s fiercest Chinese competitors compete at

The Hengchi 5 all-electric compact sports-utility vehicle (SUV) has a driving range of about 700 kilometres (435 miles) on a single charge

The model, priced at less than 200,000 yuan, is cheaper than the 300,000-yuan price point where Tesla’s fiercest Chinese competitors compete at