Embattled property developer China Evergrande Group’s automaking unit is reportedly selling its first electric vehicle below cost price to boost sales, reported newspaper International Finance News under the state-run People’s Daily.
China Evergrande New Energy Vehicle started taking pre-orders for the Hengchi 5 earlier this month, with the starting price of the vehicle at 179,000 yuan after the state subsidy.
The sales of Hengchi 5 is crucial to the direction of Evergrande’s car-making business and the price of 179,000 yuan may only be temporary to boost the sales, the newspaper reported citing an unnamed staff from the carmaker.
Deliveries are expected to start as soon as October and reach 10,000 units by the end of March, the company had said. Evergrande’s EV unit will build a sales network of 200 outlets by the end of this year, comprising both direct-sales stores and authorized dealers. Customers who put down a 1,000 yuan refundable deposit and 10,000 yuan upfront as of August 1 can pay the remaining balance at delivery and are allowed to return the car for refunds within 15 days after delivery.