Evergrande Auto will start production in the first half of 2021

Interesting details of Evergrande Auto's production plans have been released. Pilot production will start in the brand's two main plants in the first half of 2021. Then everything should go very quickly. With Hengchi 1 and Hengchi 2 the conquest of the market begins. Or at least an attempt. Evergrande Auto is well on the way to becoming a major supplier.

Evergrande Auto's Hengchi 1 starts in 2021
Evergrande Auto's Hengchi 1 starts in 2021

With global ambitions.

At the start, production is limited to the plants in Shanghai and Guangzhou. Both factories are almost finished and built according to industry standard 4.0. They guarantee cost-effective production around the clock and vehicles of consistently high quality. The plant in Nansha, a district in Guangzhou, is already in trial operation.

The pre-series production of Hengchi 1 will begin in the first half of 2021. Series production is already planned for the second half of the year. Evergrande shines with its remarkably short development times. This is made possible by using the flexible Chassis architecture from FEV-Benteler. The Chinese acquired the exclusive rights to it in September 2019. In terms of successfully shortening development times, this investment is already paying off.

Evergrande is assuming only 10 months to develop a new electric car on this basis. If so, and the future will tell, Evergrande-Hengchi would have a leadership role in the auto industry.

The ambitions are enormous. With state-of-the-art factories and low-cost manufacturing, Evergrande will want to push masses of electric cars into the market. Starting in 2023, the company plans to produce a million cars a year, exclusively all-electric vehicles.

But still quiet in Trollhättan.

To underline the seriousness and irreversibility of this decision, the group renamed itself on August 26th from Evergrande Health Industry Group Limited to China Evergrande New Energy Vehicle Group Limited.

The share is now listed on the Hong Kong Stock Exchange under the new symbol “EVERG VEHICLE”. The HKG share ID: 0708 remained unchanged.

Action in China, rest in Trollhättan. There are no activities to report from the only European location. Investments in the systems are not visible, nor are any preparations for possible production. No vacancies and no activities that would suggest production on behalf of third parties in 2021.

8 thoughts on "Evergrande Auto will start production in the first half of 2021"

  • @ Tom (deletion),

    Thank you for the effort.
    That's more than I dared hope.
    Sorry again for the inconvenience.

  • @Volvaab Driver -> I deleted it. Unfortunately, it doesn't work 😉

  • Shit, this last comment from me is of course part of the blogger's 9-5 new addition. How embarrassing …

    @ Tom,
    can you relocate it or otherwise delete it? Probably not?

    Sorry @ All for the slip up

  • Should they do it. The future belongs to real estate.

    Especially in the interior of the large metropolises, the density of the development apparently knows no boundaries.

    Politicians and urban planners are working diligently around the world to dismantle wide streets, traffic islands, median strips and large intersections in such a way that new building land is created.

    Investors have been queuing for many years, concluding preliminary contracts and accelerating the development towards car-free (inner) cities.

    The drive concept plays no role at all. Rather, what matters is what a former parking lot, what road land is worth if it is built over X storeys high?

    There are hundreds of thousands or even millions on the footprint of every single car, and that's why it happens one way and no other.

    EV or not, I find it remarkable that a real estate company of all people is looking for its own future in the automobile and then also in the upscale segment.

    I don't think that in 20 years' time western metropolises will be clogged with big hengchis. Not even (far) eastern. They'd better get rid of that.

    And things don't have a future in rural areas either.

    5
    2
  • I doubt whether an old plant is worth upgrading or even tearing down and building a new one. I assume if EVERG wants to manufacture here in Europe, they will throw plots after them in order to bring production and thus jobs into the country. Just like with Tesla here in D. Why dearly tear down an old building and dispose of it !? What honestly "worries" me a lot more is the fact how fast they are and what they come up with. In battery manufacturing, they will probably be very far ahead and deliver batteries that are smaller, lighter, faster to charge and have a longer range. Then all I can say is good night European manufacturers, you all slept. I don't understand, the established manufacturers don't want to, don't they see what's coming? Does the name Hengshi actually mean anything? Or did a copywriter drink too much sake?

  • What Detlef says here is correct. But there may be a very small hope and that is when Everg Vehicle becomes so successful in China that you need a production site in Europe. But then we're definitely talking about 5 to 10 years.

  • I cannot imagine that nothing will happen in Trollhättan. Retrofitting the plant or building something completely new on the open space. According to industry standard 4.0 - then production in Trollhausen is just as cheap as in the Mongolian steppe.

  • It could well be that Trollhättan is no longer on your radar. If so, the failure of the Swedish administration 10 years ago would come out clearly again. A savior does not always come from somewhere - as a politician, it is better not to give up the reins of action. Not only Swedish employees are now possibly the disadvantaged - the worldwide loyal SAAB community would certainly have loved to stay with the well-known brand.

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