Start of production for Hengchi 5 LX (Variant 2)

About two weeks after the first start of production, which took place with the exclusion of the media, Hengchi 5 LX is now celebrating the second attempt. With variant 2, the start is highly official. The Chinese media report and pictures with the workforce and Hengchi 5 LX are making the rounds. However, the situation remains diffuse and difficult to assess for outsiders. To make the confusion complete, the Hengchi 6 LX, the second model from the Evergrande car brand, is already looking from the production lines.

Group position unchanged

The situation of the Evergrande Group will remain difficult in 2022. Incoming orders in the real estate division are falling sharply. The headquarters are to be sold and vacated in order to further save costs. 39 skyscrapers have to be demolished according to an official order, the building permits were illegally bought with bribery.

And Evergrande founder Hui Kai Yan is offering his private residences in Hong Kong for sale.

Maturing bonds continue to be delayed or not serviced at all, and the Chinese administration, which has taken the helm, still appears determined to avoid or delay bankruptcy.

Not a good basis to launch the new car brand Hengchi

Hengchi 5 LX Production Start (Variant 2)

Against this background, the electric car plans continue, but it seems at low speeds. Hengchi 5 LX made its official second debut yesterday, this time with media participation. The tenor of the staging was friendly, the event was mostly sold as something in between the pre-series phase and mass production.

The only strange thing was that in addition to the official pictures, one of the photos on the web showed Christmas trees and the corresponding decorations. After all, the brand now has two first cars that saw the light of day. Against the background of concentrated oddities, that shouldn't matter.

Perhaps everything is just a staging intended to put suppliers and creditors in a positive mood. Because a crucial building block for success is still missing.

Hengchi 6LX

The two Hengchi 5 LX variants are still not listed for sale at MIIT, the approvals are still pending.

What sense the production makes against this background remains open. Meanwhile, the second Hengchi model is already rolling to the start.

Weibo.com first pictures of the all-electric sedan Hengchi 6 LX were shown. It is unclear whether this is a vehicle from the pre-series or whether series production has also started. The only thing that is certain is that there is no production license for this vehicle either.

Yesterday's spectacle, celebrated by Evergrande as a milestone in the development of the electric car business, did not impress the stock market. Evergrande Auto (HK 0708) shares were down more than 14% today. Too many risks and uncertainties spoil investors' appetite for a party.