ChinaNewly established in 2020 but Hengchi plans to build 1,600 dealerships nationwide, with annual output of one million vehicles from 2025.
Hengchi – an electric car brand belonging to Evergrande New Energy Vehicle, a subsidiary of China’s largest real estate company, Evergrande – just started in 2020 with a value of about $ 1.5 billion. In August of the same year, Hengchi introduced its first six models and just a few weeks ago, the company announced three new models.
Hengchi’s total of 14 electric vehicle models are mainly in the passenger car segment, including sedans, SUVs and MPVs. According to the SCMP, the selling price of these products ranges from 92,000 to 123,000 USD.
Evergrande New Energy Vehicle (Evergrande NEV) announced plans to set up a fixed distribution system in a recent press conference. Shawn Siu, president of the company, said that “building an extensive sales system is important, because it will help build a platform to gain huge market share”. In addition to the plan of 1,600 auto dealerships, a leading showroom system with 36 locations will also be opened. However, Siu did not provide a specific timeline for the construction.
For comparison, Nio – one of the most successful electric car startups in China – now has 180 dealerships nationwide. Giant Volkswagen has about 2,000 points of sale across China.
Hengchi’s current product portfolio consists of 9 models, named 1-9, with production scheduled for this year. The first models are expected to be released in the second half of 2021 or the first half of 2022. At the same time, the company aims to produce 100,000 vehicles for 2022. In 2025, Hengchi has ambitions to achieve production of one million vehicles and from 2035 to 5 million vehicle.
With these plans, the capital amount will be very large. In January, Evergrande NEV raised about $ 3.4 billion by selling shares. At the same time, 2020 business results showed that the company suffered a net loss of about $ 1.2 billion, mainly due to heavy investment in new models. However, the company said profits are increasing.
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