Evergrande Slows Down in Investments

The Chinese EV company Evergrande says it on track to debut its “Hengchi 1” model next year. Still, it plans to slow down the pace of the investments in the sector since the environmentally friendly cars continue to fall in the country during the last quarter of the semester.

Hengchi 1 Concept

The investments will be reduced from 20 billion yuan this year to 15 billion yuan next year, and will come down to 10 billion yuan in 2021.

Evergrande will build ten plants in China, Sweden, and other countries taking part in Beijing’s Belt and Road Initiative. Currently, it has eight plants in use or under construction in Tianjin, Shanghai, Shenyang, Guangzhou, as well as one in Sweden. The goal is to manufacture 1 million cars a year within the next 5 to 10 years before ramping it up to 5 million units a year in the following 5 years.

Meanwhile, Tesla’s chief executive Elon Musk said last week that its new Shanghai Gigafactory, it’s first outside the US, will make at least 1,000 cars a week by the end of the year.

Hui, China’s third wealthiest individual, said that the “Hengchi 1”, the first car developed by the company, will debut in the first half of next year and will go into mass production in 2021.

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