China Evergrande Group to begin EV production in Shanghai, Guangzhou in 2021: report

02, Apr. 2020

mage by Gerd Altmann from Pixabay
mage by Gerd Altmann from Pixabay

TOKYO, NNA – Major property conglomerate China Evergrande Group is planning to launch electric vehicle production at two plants in Shanghai and Guangzhou in 2021 in a bid to capitalize on long-term growth in an eco-friendly car market.

Evergrande Health Industry Group Ltd., the healthcare business arm of the housing developer, predicts the construction of the two factories will be completed in the second half of this year. Each plant will have an annual output capacity of 200,000 units, Chairman Shi Shouming was quoted by local online media Paper as saying.

In China, sales of eco-cars such as hybrid vehicles and EVs, which are categorized as New Energy Vehicles in the country, dipped 4 percent from a year earlier to about 1.2 million units in 2019, according to the China Association of Automobile Manufacturers.

But local and foreign carmakers are betting on potential growth in the segment in the world’s largest auto market as the Chinese government has become increasingly aware of the need to curb air pollution and carbon emissions.

The Hong Kong-listed Evergrande Health Industry will unveil its first EV model within this year, the chairman said in a 2019 annual results announcement on Monday, according to the report.

As scheduled, the healthcare company will begin mass EV production from around the end of 2021 through the end of 2022 at the two plants in the Songjiang district in Shanghai and Nansha in Guangzhou. It intends to bolster EV output capacity to 1 million units per year in the future, he said in the report.

Evergrande Health Industry suffered a net loss of 4.95 billion yuan ($697 million) in 2019, worse than the 1.43 billion yuan net loss in 2018, as the firm said capital expenditures on research and development and production infrastructure are costly at this stage, according to the local media report.