Evergrande’s Hengchi 5 electric SUV rolls off Tianjin plant after much delay, a key step in transforming the world’s most indebted developer

The Hengchi 5 all-electric compact sports-utility vehicle (SUV) has a driving range of about 700 kilometres (435 miles) on a single charge

The model, priced at less than 200,000 yuan, is cheaper than the 300,000-yuan price point where Tesla’s fiercest Chinese competitors compete at

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Screen capture of the launch of the Hengchi 5 all-electric compact sports-utility vehicle by China Evergrande Group’s unit Evergrande New Energy Vehicle. Photo: Weibo

Published: 7:30pm, 13 Jan 2022

China Evergrande Group’s first electric vehicle rolled off the assembly line on Wednesday, an important step for the world’s most indebted property developer as it doubled down on its biggest cash-burning bet to transform itself.

The Hengchi 5 all-electric compact sports-utility vehicle (SUV), with a driving range of about 700 kilometres (435 miles) on a single charge, is ready for delivery after coming off the assembly in Tianjin, Evergrande New Energy Vehicle said.

The model, priced at less than 200,000 yuan (US$31,440), is cheaper than the 300,000-yuan price point where Tesla’s fiercest Chinese competitors NIO, Xpeng Motors and Li Auto compete at. Hengchi 5 may also offer itself as a substitute for compact SUVs powered by internal combustion engines (ICEs) like Audi’s Q3 and BMW’s X1.

“If the Hengchi 5 vehicles sell well, it will be a ray of hope for Evergrande after months of efforts to keep its businesses afloat,” said Eric Han, a senior manager with Shanghai-based business advisory firm Suolei. “It was an important step taken by Evergrande to wade through its funding crisis.”