At the beginning of November, Chinese media reported unanimously that the production license for the Hengchi 5 LX had been granted. Evergrande Auto had submitted the necessary documents, the details were publicly available. The inclusion of the Production January seemed a done deal. But Hengchi 5 has now disappeared from the official lists. The guesswork in China is great.
Chaos at Evergrande
First reported cheyun that the two Hengchi 5 LX types (HDE6470BEVA1F and HDE6470BEVA0F) are no longer listed in the database. The reasons are unclear, Evergrande Auto has not yet responded to media inquiries. The sudden disappearance is at least interesting, even by Chinese standards.
One of the reasons for the disappearance of the production license can be the chaos that is currently raging at Evergrande. The real estate division is reeling more than ever and is missing one payment deadline after the other. The creditworthiness of the China Evergrande Group and its real estate subsidiaries was recently upgraded to level “C” by Fitch. downgraded. According to German law, the insolvency administrator should have taken over long ago.
In the end, Beijing became too colorful, the founder was summoned to talk and confronted with harsh accusations. The administration wants to avoid bankruptcy and sees the solution in a hard but state-controlled landing. As a result of the incidents, a commission with representatives of the authorities was formed to get the chaotic situation under control.
The real estate department of the Evergrande Group (HK 3333) is in fact under state supervision. What this means for Evergrande Auto (HK 0708) is open.
Own battery production
The car plans still didn't die. There is politics involved, it is about power and a billion dollar market and its future. Outsiders, beyond China, have a hard time keeping track even halfway.
Hengchi 5 LX should (te) be launched in January with batteries from CATL. The planned in-house battery production seemed to be on hold for the time being. In the meantime, it has been announced that Evergrande Auto battery production will start in its own plant in Yangzhou in May 2022.