Evergrande Auto was represented with 2021 models at Auto Shanghai 9. In front of the hall, visitors were able to test drive a Hengchi SUV for the first time. And on television there was a 30-minute live broadcast just about the Hengchi brand. A big show for a manufacturer who has not yet had a car on the road. But who has more than a dozen models developed in parallel and who has a big bet on electromobility.
Evergrande Auto worth more than GM or Ford
In fact, Evergrande Auto's value has grown spectacularly. Anyone who invested in shares in the company listed on the Hong Kong stock exchange 12 months ago was able to reap a return of more than 1000%. Evergrande Auto is currently worth 87 billion US dollars, reports the Automotive News. More than established manufacturers like Ford or GM.
The rally on the stock exchange could continue in this way when the first electric cars with the Hengchi lion can be seen on the street in the first half of 2022. E-mobility subsidies continue to flow abundantly in China, and as long as they do, demand will remain secure. In addition, there is Germany, which is also on its way to becoming the second most important market for e-cars thanks to busy government support.
According to plan, Hengchi production will start in the second half of the year, Evergrande is still within the self-imposed time window. But some of the big goals have meanwhile been cashed in. The production of up to 1 million electric cars per year has been postponed to 2025, for 2035 one sees already 5 million annually. More than the giant Volkswagen sells in China each year.
It is questionable whether Evergrande Auto can keep up the pace it has chosen. 14 series are being developed in parallel and should be launched on the market as soon as possible. That is much more than some established manufacturers would trust themselves. Especially since a purely electric vehicle is not only about the hardware, as in the old combustion engine, but also about the software and infrastructure in the background.
The Evergrande bet on the stock exchange is still speculative. But the fantasy of a Chinese answer to Tesla is there. At least as long as the billions keep flowing.