Evergrande Hengchi founds two new companies

Maybe some observers had bet on faster development at Evergrande. But matters surrounding the new Hengchi car brand are still hesitant. The first product is late, the Corona crisis is also demanding its price here. After the complete takeover of NEVS and the former Saab Immobilien, Evergrande founds two more companies.

Benteler platform for Evergrande Hengchi
Benteler platform for Evergrande Hengchi

Am 10. Julie founded Evergrande in Guangdong the Evergrande Hengchi New Energy Automobile Technology Co. Ltd. Research and development as well as the production of auto parts and complete automobiles were registered as the subject of the company. The sole owner is Evergrande New Energy Automobile Investment Holdings Group. The share capital is half a billion yuan, which is equivalent to € 62,5 million.

Evergrande had founded another company two days earlier, based in Guangxi. It is called Evergrande New Energy Automobile and has a business purpose comparable to that of the new company in Guangdong.

Evergrande has several factories in China that manufacture electric cars and components under construction. In the first half of 1, the real estate developer wanted to present the first own vehicle, the plans are delayed. Hengchi as the final brand name seems set with the new foundation in Guangdong. Evergrande plans to launch a total of 2020 or 14 new electric cars. Some of them could be built in Trollhättan.

A difficult environment for new electric car brands

As a result of the Corona crisis, start-ups for electric cars are traveling in heavy waters worldwide. A prominent example of deferred plans is the Byton brand. The much-noticed company was considered to be full of opportunities and the jump to Europe was likely. With Carsten Breitfeld, a former BMW manager was at the helm, who could be trusted. Breitfeld left Byton in autumn 2019 and moved to Faraday Future. Another promising start-up that has been financed with money from China and is now becoming again. In the meantime, it was close to the abyss because Evergrande withdrew as an investor.

Byton will launch on July 1st Operation for now. The company was put into a kind of self-imposed hibernation until the market environment became more friendly. It is not certain whether it will ever wake up again. Just like the question of when the economic environment will be better for ambitious electric car plans.

Picture: Benteler (1/1)

5 thoughts on "Evergrande Hengchi founds two new companies"

  • I guess so. The leading development partners are working towards Evergrande, the product could be really good. The other side: you always get what you pay for. Whoever orders “Premium”, and you want to go there, will probably get it.

  • The music takes place in China. What really comes when is not decided in Trollhättan. We are only rapporteurs with limited insight. Battery-electric is currently considered set. It would be possible to position yourself wider, the knowledge is available at Koenigsegg with very interesting technology. But there is currently evidence of such a development.

  • China has apparently relaxed its restrictive approval requirements for combustion engines so that the car market can recover as quickly as possible. Since burners are probably cheaper to buy in China than comparable electric cars, they are currently selling better than electric cars, although their funding has been extended (https://efahrer.chip.de/news/vorbild-fuer-europa-chinas-automarkt-erholt-sich-doch-elektroautos-schwaecheln_102274).

    Evergrande may want to avoid the impression that its products are selling poorly when they come onto the market at all costs, and tries to wait until the market conditions for electric cars are better before they start selling.
    That might take 6 to 12 months if the pandemic is stubborn, maybe even longer.

  • Is it already clear whether it will be pure electric vehicles such as Tesla or hybrid and even hydrogen drives?

  • After all the announcements and the internationally generated attention, can the cars become so good that they don't disappoint?

    Dangerous game that Evergrande is playing. But the players and their private assets are probably on the safe side ...


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