Evergrande Group Photo: CFP

China's property developer Evergrande Group's first mass-produced electric vehicle (EV) Hengchi 5 sport-utility vehicles (SUV) will begin pre-sales at 8 pm on Wednesday, as the debt-burdened group bets on its EV business as a new source of revenue for the healthy and sustainable development of the company.

In an apparent move to boost sales amid fierce competition, the company announced that the first 10,000 customers can finalize payment when the vehicle is delivered and will be able to request a refund within 15 days of getting the car in order to ensure their money's security. Moreover, the company said consumers will make payment and withdrawal via a special account at a notary public office, but did not give more details.

A services staff member told the Global Times that there is currently no data about pre-orders, while prices for the vehicle will not be unveiled until 8 pm Wednesday.

"There is no doubt Evergrande has chosen the right direction for future development, but it is too early to say whether expanding into the EV sector can help the company solve its debt crisis," Wu Shuocheng, a veteran automobile analyst, told the Global Times on Tuesday.

Wu said the group has missed the best opportunity by being too slow in rolling out its EVs. "Due to industrial and supply chain disruptions, the prices for raw materials and core components may continue to rise in 2023, which will further increase costs for Evergrande," he said.

Earlier in January, the company announced that its first Hengchi 5 SUV had rolled off the production line in North China's Tianjin Municipality on December 30, 12 days ahead of schedule.

In March, the Ministry of Industry and Information Technology included the model in a recommended promotion and application catalogue of electric vehicles. The company has also opened the first batch of experience centers in major cities, including Tianjin and Guangzhou, South China's Guangdong Province.

The launch of its NEV products came at a pivotal period for the company, which is burdened with over $300 billion in liabilities and struggling to address an ongoing debt crisis.

China Evergrande New Energy Vehicle Group  has not yet published its audited results for the year ending 31 December 2021, and the trading of its shares in Hong Kong has been suspended since April 1, according to a document the company filed to Hong Kong Exchanges and Clearing in March.

The group said that it was endeavoring to commence mass production of the Hengchi series and was targeting June this year as the rollout date.

Evergrande has invested a total of 47.4 billion yuan ($7.07 billion) in the EV sector since 2018, including 24.9 billion yuan for the acquisition of core technologies and R&D, and another 22.5 billion yuan for facilities and machines, according to media reports.

It aims to become the world's largest NEV group, with annual output and sales of more than one million vehicles by 2025 and over 5 million by 2035.

Global Times