Not a PPT car, Evergrande's first tram officially rolled off the production line

Source: Brokerage China

Evergrande's first car is really coming.

On January 12, Evergrande officially announced that Hengchi 5's first car rolled off the production line, 12 days earlier than the original plan, in the Tianjin factory, which is the first model launched by Evergrande Automobile, which also means that Hengchi has entered the countdown to mass production.

Evergrande Automobile's model planning shows that Hengchi 5 is positioned in a compact pure electric SUV, priced below 200,000 yuan, benchmarking Audi Q3, BMW X1 and other models.

If Evergrande Automobile is sold, can Xu Jiayin turn the tables against the wind? Brokerage China reporter noted that new energy vehicles are an industrial sector that Evergrande has firmly invested in in recent years, and it is also an industry that is currently on the cusp. It is worth mentioning that in October 2021, Xu Jiayin announced a major strategic adjustment of Evergrande to realize the industrial transformation of real estate to new energy vehicles in the next 10 years, forming an industrial pattern dominated by new energy vehicles and supplemented by real estate.

On January 12, Evergrande Automobile rose more than 7% in morning trading, and as of the close, Evergrande Automobile closed at HK$4.03 per share, up 3.33%, with a market value of HK$43.7 billion.

Evergrande's first model officially rolled off the production line

On January 12, Evergrande officially announced that Hengchi Automobile ushered in a milestone, and the first car of Hengchi 5 was officially rolled off the production line, 12 days earlier than the original time.

Relevant insiders told the Chinese reporter of the brokerage that the first car of Hengchi 5 was actually successfully rolled off the production line at the end of December, and the Tianjin factory held a low-key off-line activity, originally planned to hold the first car off-line ceremony in early January, but due to the epidemic and other reasons, it was finally selected to release in the form of official video release, announcing that Hengchi 5 was officially off the production line, and unveiling the entire manufacturing process of this pure electric SUV.

It is understood that as the first model launched by Evergrande Automobile, Hengchi 5 is positioned as a pure electric A-class luxury SUV, according to the declaration information, Hengchi 5 length, width and height are 4725/1925/1688mm, wheelbase 2780mm. In terms of power, the new car adopts an electric motor produced by United Automotive Electronics Co., Ltd., with a maximum power of 150kW, a battery life of 700km, and a price of less than 200,000 yuan, and will compete with traditional luxury SUVs such as BMW X1 and Audi Q3 in the A-class luxury SUV market in the future.

It is worth mentioning that immediately after Hengchi 5, Hengchi 6 is not far off the line. According to reports, Hengchi 6 is a pure electric A-class luxury crossover SUV, with a length of 4702mm, a wheelbase of 2780mm, and a range of 720km.

It is understood that since 2021, Evergrande has continued to speed up, and has completed the launch of Hengchi 1, 3, 5, 6 and 7 trial production vehicles, and successfully completed the winter test, summer test and plateau test.

On October 11, 2021, Evergrande Automobile held a strategic partner conference at the Tianjin production base, and Liu Yongzhuo, president of Evergrande Automobile, said that Evergrande Automobile has launched a three-month battle to ensure that Hengchi's first car will roll off the production line in Tianjin in early 2022, for which the company mobilized core R&D teams and technical elites from Shanghai, Guangzhou, Shenzhen and other places to support.

Until the official announcement of Evergrande, Evergrande Automobile's first model, Hengchi 5, went off the production line 12 times ahead of schedule, which means that the previously promised goal of the first car of Hengchi at Tianjin Plant will be rolled off the production line in early 2022.

New Energy Vehicles: The Hope of Turning Over?

Hengchi Automobile, will it be the hope of Xu Jiayin's turnaround?

New energy vehicles are still in the cusp, the market prospects are promising, including Xiaomi Group and Sony and other cross-border into the ranks of car manufacturing, Huawei, which does not build cars, has repeatedly received attention because of its association with new energy vehicles.

On January 12, the China Association of Automobile Manufacturers released a statistical analysis of the data released on the 12th, and in 2021, China's automobile production and sales reached 26.082 million and 26.275 million units, respectively, an increase of 3.4% and 3.8% year-on-year, ending a downward trend for three consecutive years.

Among them, especially new energy vehicles, became the biggest highlight of the automotive market in 2021, with annual sales of new energy vehicles reaching 3.521 million units, an increase of 1.6 times year-on-year, ranking first in the world for 7 consecutive years, and the market share reached 13.4%, 8 percentage points higher than that of the previous year.

According to Evergrande Automobile's previous planning goals, the company is committed to becoming the world's largest and strongest new energy vehicle group, achieving annual production and sales of more than 1 million vehicles by 2025 and more than 5 million vehicles by 2035.

Will Hengchi Automobile become the direction of Evergrande's breakthrough? In fact, Under evergrande's difficult predicament, Hengchi 5 can still achieve the downline, which shows Evergrande's optimism and persistence in new energy vehicles.

In March 2021, Evergrande Automobile's performance conference disclosed that Evergrande Automobile's cumulative investment in the new energy automobile industry has reached 47.4 billion yuan, of which 24.9 billion yuan is used for the acquisition of core technologies and research and development, and 22.5 billion yuan is used for factory construction and equipment parts procurement.

In October 2021, Xu Jiayin announced the decision to fully transform to new energy vehicle companies at the special meeting for the resumption of work and production of Evergrande Group, and said that the full implementation of existing building sales, significantly reducing the scale of real estate development and construction, not buying land within 10 years, and at the same time, realizing the transformation from the real estate industry to the new energy automobile industry within 10 years.