Chinese property developer Evergrande group last week announced it plans to invest CNY45bn (US$6.4bn) by 2021 to develop and produce electric vehicles, according to local reports.
Speaking at a conference in the Chinese city of Guangzhou, the company's chairman Xu Jiayin said he wants his company to become the world's largest producer of new-energy vehicles, with annual sales of over one million units within five years.
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Mr Xu said the funds will be used to acquire any core technologies and companies that it requires to achieve these targets, adding "if we can't buy the companies we need, we'd like to join hands with them through cooperation".
Over the last two years, the company has acquired a controlling stake in National Electric Vehicle Sweden for US$930m and has invested over US$300m in a new venture with Swedish supercar maker Koenigsegg. It also plans to invest US$154m in a 58% stake in lithium-ion battery maker Shanghai Center at New Energy.
Mr Xu said his company plans to unveil its first electric vehicle, the Hengchi 1, in the first half of 2020 with mass production scheduled for 2021. He said a total of 15 models are currently under development and that the company has eight plants in use or under construction – in Tianjin, Shanghai, Shenyang, Guangzhou and also in Sweden.
Some analysts consider Evergrande's targets to be extremely ambitious, especially given the sharp decline in new-energy vehicle sales in China in recent months.
