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China Evergrande billionaire takes early losses in plans to overtake Tesla, dominate global electric car market
- Evergrande New Electric Vehicle Group losses widen in the first half as billionaire readies plants for mass production in 2021
- Company aims to produce up to 1 million units within three to five years to become ‘the biggest and strongest’ in the world
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China Evergrande group is planning to dominate the global electric car market in the next three to five years. It is taking some heavy knocks along the way as early losses deepened.
The venture posted a pre-tax loss of 2.68 billion yuan (US$389 million) in the first half this year, widening from 1.96 billion yuan a year earlier, based on China Evergrande New Electric Vehicle Group’s exchange filing on Thursday. That contributed to an interim net loss of 2.3 billion yuan, versus 1.5 billion yuan in the same period last year, for the listed unit.
Controlled by Hui Ka-yan, China’s third richest billionaire, the unit has built up its auto venture since mid-2018 by buying up cutting-edge foreign technology, intellectual property, battery producer and a domestic distribution network at home and abroad.
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Earlier this month, the group unveiled a line-up of six Hengchi models and plans are afoot for mass production at its mainland factories in the second half of next year, company president Liu Yongzhuo said in a media briefing.
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“We had no technology or experience when we first entered the sector two years ago, but now with partnerships and acquisitions, we are aiming to become the world’s biggest and strongest EV maker in three to five years with much lower cost,” he said. “We are confident our cars will grab market share quickly.”
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