Chinese Regulators Allow China Evergrande Group To Produce And Market The Hengchi 5 Electric Sports Car

JAKARTA - China's industrial regulator has given approval to China Evergrande New Energy Vehicle Group to start sales of its first electric car, such as the Hengchi 5 sports utility vehicle. The licensing document was issued by the regulator on Monday, March 14.

China's Ministry of Industry and Information Technology (MIIT) has included two Hengchi models made by property development unit China Evergrande Group in its electric vehicle catalog it says are recommended for "promotion and application".

Models, electric vehicles in collaboration with Sweden's SAAB , added to this catalog are deemed eligible for subsidies and can be sold. The MIIT statement shows approval was given on March 8, as quoted by Reuters.

"Evergrande NEV will start selling cars as soon as April," said a source within the company.

Without providing a number, the source said this year's sales target is not too high due to production constraints but will increase rapidly next year.

Meanwhile, China Evergrande Group has officially declined to comment on the permit.

Reuters also reported in December that the Evergrande NEV had started mass production of the Hengchi 5 SUV ahead of schedule.

The company, the main unit of China Evergrande Group, has been struggling to secure their external investment for a long time.

China Evergrande Group said in November that it had negotiated with potential buyers on the disposal of some assets and talked to potential investors about funding their electric car.

The entry of China Evergrande Group into the electric car industry will strengthen China's image as one of the largest electric vehicle-producing countries in the world.