China’s indebted property giant Evergrande Group has delivered the first batch of its newly launched electric vehicle (EV) as it wades into the booming market.
Subsidiary business China Evergrande New Energy Vehicle Group Ltd delivered its Hengchi 5 to the first 100 customers on Saturday, the company said on its official WeChat account.
Its step into China’s electric vehicle sector comes one day after the country’s largest maker BYD posted third-quarter profits jumping 350% from a year ago.
Also on AF: Japan Draws up $200bn Extra Budget to Ease Living Costs
Evergrande is aiming to shift the group’s primary business from real estate to the automobile venture over the next decade, with plans to make 1 million vehicles by 2025.
It plans to start mass production of its second EV model in the first half of 2023 and a third in the latter half of next year.
The Hengchi 5 was assembled in a vehicle plant in China’s northern city of Tianjin, and sells for 179,000 yuan ($24,690.00).
- Reuters, with additional editing from Alfie Habershon