The Chinese real estate giant Evergrande rolled its first electric vehicle off the assembly line on Wednesday.
The Evergrande New Energy Vehicle Group said on its Weibo account that the all-electric SUV was completed 12 days ahead of schedule. A video from the production line was posted.
The EV unit of China Evergrande Group increased production last month.
The Chinese government has stepped in to help with the company's restructuring as it grapples with a $300 billion debt pile.
According to the 21st Century Business Herald, Evergrande's CEO said the company wanted to make electric vehicles its main business within ten years.
The only EV model that has entered mass production so far is the Hengchi 5. The vehicle has a driving range of 700 kilometres on a single charge and is priced at less than 200,000 Chinese dollars.
Evergrande has ambitions for its EV business. The company said in August 2020 that it wants to become the largest and most powerful new energy automobile group in the world within three to five years. It said it would deliver 1 million cars per year by 2025.
In the year 2021, the company delivered around 936,000 cars.
China is the world's largest EV market but Evergrande's Hengchi is entering a very competitive arena where international players likeTesla compete with a host of leading domestic brands.
Eric Han, senior manager at Suolei business advisory told the SCMP that 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. It was important for Evergrande to wade through its funding crisis.
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