Category: Industry News

Evergrande NEV warns risks of production halt if it can’t get additional liquidity

Evergrande NEV's only model currently on sale, the Hengchi 5, has delivered more than 900 units, according to an exchange announcement.

Evergrande NEV warns risks of production halt if it can't get additional liquidity-CnEVPost

(Image credit: CnEVPost)

Evergrande New Energy Vehicle Group (Evergrande NEV), the electric vehicle unit of China Evergrande Group, is at risk of discontinuing production after struggling to deliver hundreds of vehicles.

Evergrande NEV's only model currently on sale, the Hengchi 5, is continuing to be produced in volume, with more than 900 units delivered to date, according to an announcement the company made today on the Hong Kong Stock Exchange website.

In order to focus its financial resources on supporting the mass production of the Hengchi 5, Evergrande NEV has continued its cost-saving initiatives and has taken measures to reduce the workforce of its Swedish subsidiary National Electric Vehicle Sweden AB, according to the announcement.

However, Evergrande NEV will be at risk of shutting down production in the event that additional liquidity is not available, the announcement said.

The group will plan to launch several flagship models if it can seek more than RMB 29 billion ($4.21 billion) in future financing and hopes to get them into mass production, the announcement said.

Under this plan, Evergrande NEV's cumulative unleveraged cash flow from 2023 to 2026 is expected to be between RMB minus 7 billion and RMB minus 5 billion, the announcement said.

Trading of Evergrande NEV's shares in Hong Kong has been suspended since April 1, 2022, and the timing of restarting trading has not yet been determined.

Hengchi 5 is the first model in mass production of Evergrande NEV's Hengchi Auto, which started delivery on October 29, 2022.

The model is currently available in only one version, with a price of RMB 179,000.

On December 2, Reuters reported that Evergrande NEV suspended mass production of the Hengchi 5 due to a lack of sufficient new orders for the SUV.

A Securities Times report at the time cited people close to Hengchi as saying the brand planned to lay off 10 percent of its workers and would suspend payroll to 25 percent of its workers for one to three months.

($1 = RMB 6.8807)

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CAAM calls for return to normal order in China’s auto industry as price war disrupts sector

Reducing prices to deal with inventory and properly recover costs are normal business practices, but these tactics should not turn into price wars, the CAAM said.

CAAM calls for return to normal order in China's auto industry as price war disrupts sector-CnEVPost

(Image credit: CnEVPost)

The price war is one of the most talked-about topics in China's auto industry this month, creating operational challenges for many car companies. Now, an industry association is calling for a return to rationality for all parties to bring order to the market.

The hype about this round of price cuts in China's auto industry should be cooled down as soon as possible so that the industry can return to normal operation and ensure healthy and stable development throughout the year, the China Association of Automobile Manufacturers (CAAM) said in an article posted on its WeChat account today.

In the article, titled "The current round of auto promotions should be treated rationally and the market should return to normal order as soon as possible," the CAAM argues that price wars are not a long-term solution and the auto market should return to normal order as soon as possible.

In the fourth quarter of last year, especially since the Covid outbreak in China in December, the pace of auto production and sales has been seriously affected, the article noted.

The overall sales of China's auto industry dropped significantly in January-February, inventories rose sharply, and automakers saw their operating pressure increase and took various measures to reduce inventories, the article said.

Some local governments have launched pro-consumption policies aimed at boosting local auto consumption and easing difficulties for car companies.

The reasons for this round of short-term promotions are multifaceted, and the companies offer a lot of discounts on models that are mostly long-stocked, old and stagnant inventory cars that have previously been available at considerable discounts, the CAAM said.

However, some marketing in the sales channels exaggerated price reductions to attract attention in order to increase customer acquisition, which is easily misleading, the CAAM said.

The CAAM calls for proper marketing and objective and accurate media reporting.

With the accelerated pace of transformation of the auto industry, traditional car companies are under the dual pressure of maintaining stable operations and making the transformation, with weaker profitability, the CAAM said.

Price cuts to deal with inventory and proper cost recovery are normal business measures, but these means should not turn into price wars, the CAAM said.

Price wars don't last, and value for money is the eternal law of business, according to the article.

Automakers should look at the long term and make more efforts in product technology, quality, service and brand power. Local governments should take the right approach in the process of stabilizing growth and promoting consumption, the article said.

"The government, enterprises and the media should look at this rationally and work together to maintain market order," the CAAM said.

The article also mentioned that China's new energy vehicle (NEV) sales reached about 7 million units last year, and the number is expected to reach 9 million in 2023.

However, internal combustion engine (ICE) vehicles are also accelerating technology upgrades and constantly adapting to changes in market demand, the CAAM said, adding that NEVs and ICE vehicles will coexist for a long time to come and can meet different consumer needs.

More Chinese EV makers promise no price cuts as price war intensifies consumer wait-and-see sentiment

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Beijing, Xi’an latest cities to offer subsidies to encourage residents to buy NEVs

Beijing is offering subsidies of up to RMB 10,000 for residents to purchase NEVs, while Xi’an is offering subsidies of up to RMB 6,000 for NEV purchases and RMB 10,000 for the installation of charging piles.

Beijing, Xi'an latest cities to offer subsidies to encourage residents to buy NEVs-CnEVPost

(Image credit: CnEVPost)

After China’s state-level subsidies for the purchase of new energy vehicles (NEVs) expired at the end of last year, a growing number of cities have begun offering separate subsidies this year to support local economic development.

The Chinese capital city of Beijing released details of its policy to encourage local residents to purchase NEVs, following media reports of the city’s plans without any details last month.

Between March 1 and August 31, Beijing residents who transfer or scrap passenger vehicles they have owned for more than a year and buy NEVs can receive a subsidy of up to 10,000 yuan ($1,450), according to a program jointly released today by several government departments in the city.

The move is aimed at boosting Beijing’s car consumption, optimizing the local vehicle mix and encouraging local residents to replace their passenger cars with NEV, the program reads.

The program refers to passenger vehicles as gasoline, diesel, gas, hybrid or battery-powered small and micro vehicles registered in Beijing for more than one year, and NEVs as purely electric small and micro passenger vehicles, including extended-range electric vehicles (EREVs).

This means that residents who previously owned a passenger car in Beijing — whether it was a traditional internal combustion engine vehicle or NEVs — can receive a subsidy if they purchase a pure electric vehicle or an EREV when replacing their old vehicle. If they purchase a plug-in hybrid, on the other hand, they will not be eligible for the subsidy.

If they previously owned NEVs, they can receive a subsidy of RMB 8,000 even if they have held them for less than 1 year.

Local residents who transfer out of other types of passenger vehicles and purchase NEVs can receive a subsidy of RMB 8,000 if the original vehicle has been owned for 1-6 years. If the old vehicle has been held for more than 6 years, then the subsidy amount is RMB 10,000.

It is worth noting that Beijing implemented a similar policy last year.

On June 26, 2022, Beijing launched a program on encouraging vehicle replacement consumption in order to incentivize residents to purchase NEVs when they replace their vehicles.

The city also offered subsidies of up to RMB 10,000 at the time, and the policy was then valid from June 1 to December 31.

On February 28, Beijing Daily reported that the Beijing city government held a consumer season launch ceremony with tens of thousands of merchants participating in areas including automobiles, restaurants, e-commerce and tourism.

In the auto sector, Beijing will continue last year’s car replacement subsidy policy, details of which will be released in due course, the report said.

In addition to Beijing, Xi’an, a city in northwest China’s Shaanxi province, also released its NEV purchase subsidy program today.

Between March 21 and April 30, consumers who buy a NEV produced by a local carmaker in Xi’an will receive a subsidy of up to RMB 6,000 yuan.

Local consumers who install their own charging facilities by December 31 of this year will receive a subsidy of RMB 10,000.

Prior to Beijing and Xi’an, many other cities, including Shanghai and Hefei in Anhui province, released similar policies earlier this year.

($1 = RMB 6.8722)

Shanghai extends $1,500 subsidy to encourage residents to replace cars with EVs

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Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS

Mullen has acquired Qiantu's North and South American intellectual property and distribution rights, allowing the assembly and distribution of the Qiantu K50 in the Americas.  |  Mullen Automotive Inc

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS-CnEVPost

(Image credit: Qiantu)

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS

Mullen has been granted Qiantu's North and South American intellectual property and distribution rights, allowing the assembly and distribution of the Qiantu K50 in the Americas.

Qiantu Motors, which is almost forgotten in its home market of China, is partnering with an American electric vehicle (EV) maker to bring its electric supercar back to life.

Qiantu recently signed a strategic partnership agreement with Mullen Automotive to expand into the Americas, according to a press release from the Chinese startup today.

Qiantu will leverage its strengths in vehicle design, technology development, and process innovation, combined with Mullen's manufacturing and sales strengths in the Americas market, to bring new EV options to consumers in the Americas, the release said.

Qiantu's partnership with Mullen dates back to 2019, when the two partnered on the marketing of the Qiantu K50 in North America.

With the signing of the latest partnership agreement, the Qiantu K50 will transition from the marketing phase to a substantial production and sales phase, the release said.

The partnership area will also be expanded from the North American market to include the entire Americas, according to the release.

Separately, Mullen said in its March 20 press release that it has been granted the North and South American intellectual property and distribution rights for Qiantu and its affiliates, allowing assembly and distribution of the Qiantu K50 in the Americas.

Mullen will begin its program to re-engineer and re-design the product to meet requirements for US certification and customer expectations for today's supercars, with final assembly in Mishawka, Indiana, the US EV maker said.

These modifications will be consistent with Mullen's current vehicle design language in the Mullen FIVE and Mullen FIVE RS.

To ensure supercar status, the car will also feature an updated powertrain, targeting a 0-60 mph time of less than 2.0 seconds and a top speed of more than 200 mph.

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS-CnEVPost

(Image credit: Mullen)

Qiantu, a wholly owned subsidiary of CH-Auto Technology Co Ltd, was founded in 2015 and was one of the first EV startups in China.

Qiantu's first model, the Qiantu K50, was launched in 2018 at a then subsidized price of RMB 686,800 ($99,860), but the model did not earn recognition for the company and was discontinued in November 2020.

On December 18, 2021, Qiantu held a strategy sharing session at its plant in Suzhou, marking its return after a two-year hiatus.

On June 6, 2022, Qiantu announced the start of pre-sales in China for its second model, the Qiantu K20, a two-door, two-seat hatchback with a pre-sale price range of RMB 86,800 to 149,800.

On October 24, 2022, Qiantu and Appollen EV held a launch event in Malaysia to showcase and start pre-sales of the Qiantu K50, Qiantu K25, and Qiantu K20.

They were renamed S1, A1 and A2 respectively in Malaysia, with the Qiantu K25 making its global debut and not previously launched in China, the company said at the time.

($1 = RMB 6.8772)

Qiantu Motor taps Malaysian market with 3 models

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Kia enters China’s crowded EV market, 1st model expected to launch in Aug

The Kia EV6 will be brought to China as an import and is expected to go on sale in August this year. It will also launch the EV5 in November, its first model to be produced in China.

Kia Motors, an affiliate of Hyundai Motor Co, is entering China's increasingly crowded electric vehicle (EV) market.

The South Korean automaker announced its official entry into the Chinese EV market at a launch event today, unveiling the EV5 Concept, EV9 Concept and EV6 GT.

Its first all-electric model offered in China, the EV6, will be introduced as an import and is expected to be launched in August of this year.

The EV6 is Kia's first all-electric vehicle, based on the dedicated EV platform E-GMP, and claims to be able to accelerate from 0 to 100 km/h in as fast as 3.5 seconds.

The model is equipped with 800V fast charging capability, charging from 10 percent to 80 percent in just 18 minutes.

Kia will also launch the EV5, its first global model to be built in China and debuting here, in November.

(Kia EV5 concept car)

Kia also plans to launch its flagship electric SUV EV9 in 2024, an entry-level all-electric SUV in 2025, a premium electric sedan based on a next-generation EV-specific platform in 2026, and a mid-size all-electric SUV in 2027.

The EV9 concept has a length of more than 5,000 mm and a wheelbase of 3,100 mm, with a 3-row, 6-seat interior layout.

The concept car will have an 800 V high-voltage fast charging system and can be charged up to 350 kW.

The EV9 will be Kia's first vehicle in China to be equipped with the highway system, and the production version is expected to be equipped with L3 assisted driving system.

(Kia EV9 concept car)

In China, Kia has a sales target of 450,000 units by 2030, of which 40 percent will be new energy vehicle (NEV) models.

Kia plans to launch the Kia brand app in China later this year, which will offer features including car shopping, car use, services, and infotainment.

The automaker will create sales channels in China including dealership stores as well as City Stores, and will set up special sections for NEV models in showrooms.

Kia will establish City Store city showrooms in the core business districts of China's first and second-tier key cities, including Beijing, Shanghai, Guangzhou and Shenzhen.

Notably, on November 20 last year, Kia announced the opening of its first City Store in China in Xi'an, Shaanxi province, where its EV6, an all-electric vehicle, will be one of the first models to be showcased in the store.

The City Store is a new channel for Kia's electrification transformation and a new platform to revolutionize the user experience, the company said at the time.

Kia launches EV offensive with opening of its 1st City Store in China

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Polestar 3 officially unveiled in China, price cut by about $29,080 from previous

Polestar has officially unveiled the Polestar 3 in China today with what it calls a new pricing system.  |  Polestar.US

The first SUV from Polestar, the premium electric vehicle maker owned by and Volvo Cars, has been officially unveiled in China, but at a price reduction of about RMB 200,000 yuan ($29,080) from the model's global debut last year.

Polestar officially introduced the Polestar 3 in China today and announced what it calls a new pricing system, with the long-range dual-motor model starting at RMB 698,000 and the long-range dual-motor with performance pack model at RMB 798,000.

The Polestar 3 is Polestar's first SUV and will be the electric vehicle company's first all-electric model that will be produced in both China and the US.

Polestar gave the Polestar 3 SUV its global debut on October 12, 2022, when it announced its two versions with starting prices in China of RMB 880,000 and RMB 1,030,000, respectively.

The latest prices announced today mean that the starting price for the Polestar 3 regular long-range version has been reduced by RMB 182,000 and the starting price for the performance version has been reduced by RMB 232,000.

Information on Polestar China's website indicates that the expected delivery dates for both versions of the Polestar 3 are the fourth quarter of this year.

The Polestar 3 will be on display at the Shanghai auto show next month, and the model will go into production at Polestar's plant in Chengdu, Sichuan province, in the middle of this year, Polestar said today.

The 20th Shanghai International Automobile Industry Exhibition (Auto Shanghai 2023) will be held from April 18-27, with media days from April 18-19 and professional visitor days from April 20-21, while the general public can visit from April 22-27.

Production is also expected to begin by mid-2024 at Polestar's plant in Ridgeville, South Carolina, the automaker said when it unveiled the Polestar 3 last year.

At that point, the US will serve as the main supply location for North America and other markets. The plant is expected to make its first deliveries in mid-2024.

Polestar was co-founded by Volvo and Geely in 2017, and the first product, the Polestar 1, was only available in limited quantities and has been discontinued.

The Polestar 2, which started deliveries in 2020, is the brand's first real production model on sale and will only be produced at a plant in Taizhou, Zhejiang province, in eastern China.

Despite the Polestar 3's strong performance and configuration, its prices in China appear to be very high, as noted in a previous report by CnEVPost.

The Polestar 3's previous starting price of RMB 880,000 is almost twice the NIO ES7's starting price of RMB 468,000.

Both versions of the ES7 have a 0-100 km/h sprint time of 3.9 seconds, while the Polestar 3 performance version has the figure at 4.7 seconds and the long-range version at 5 seconds.

($1 = RMB 6.8783)

Polestar 3 SUV officially unveiled, but prices may drive away Chinese consumers

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Polestar 3 officially unveiled in China, price cut by about $29,080 from previous

Polestar has officially unveiled the Polestar 3 in China today with what it calls a new pricing system.  |  Polestar.US

The first SUV from Polestar, the premium electric vehicle maker owned by and Volvo Cars, has been officially unveiled in China, but at a price reduction of about RMB 200,000 yuan ($29,080) from the model's global debut last year.

Polestar officially introduced the Polestar 3 in China today and announced what it calls a new pricing system, with the long-range dual-motor model starting at RMB 698,000 and the long-range dual-motor with performance pack model at RMB 798,000.

The Polestar 3 is Polestar's first SUV and will be the electric vehicle company's first all-electric model that will be produced in both China and the US.

Polestar gave the Polestar 3 SUV its global debut on October 12, 2022, when it announced its two versions with starting prices in China of RMB 880,000 and RMB 1,030,000, respectively.

The latest prices announced today mean that the starting price for the Polestar 3 regular long-range version has been reduced by RMB 182,000 and the starting price for the performance version has been reduced by RMB 232,000.

Information on Polestar China's website indicates that the expected delivery dates for both versions of the Polestar 3 are the fourth quarter of this year.

The Polestar 3 will be on display at the Shanghai auto show next month, and the model will go into production at Polestar's plant in Chengdu, Sichuan province, in the middle of this year, Polestar said today.

The 20th Shanghai International Automobile Industry Exhibition (Auto Shanghai 2023) will be held from April 18-27, with media days from April 18-19 and professional visitor days from April 20-21, while the general public can visit from April 22-27.

Production is also expected to begin by mid-2024 at Polestar's plant in Ridgeville, South Carolina, the automaker said when it unveiled the Polestar 3 last year.

At that point, the US will serve as the main supply location for North America and other markets. The plant is expected to make its first deliveries in mid-2024.

Polestar was co-founded by Volvo and Geely in 2017, and the first product, the Polestar 1, was only available in limited quantities and has been discontinued.

The Polestar 2, which started deliveries in 2020, is the brand's first real production model on sale and will only be produced at a plant in Taizhou, Zhejiang province, in eastern China.

Despite the Polestar 3's strong performance and configuration, its prices in China appear to be very high, as noted in a previous report by CnEVPost.

The Polestar 3's previous starting price of RMB 880,000 is almost twice the NIO ES7's starting price of RMB 468,000.

Both versions of the ES7 have a 0-100 km/h sprint time of 3.9 seconds, while the Polestar 3 performance version has the figure at 4.7 seconds and the long-range version at 5 seconds.

($1 = RMB 6.8783)

Polestar 3 SUV officially unveiled, but prices may drive away Chinese consumers

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For more articles, please visit CnEVPost.

SAIC-Volkswagen offers up to $7,250 discount as China auto price war continues

The offer has a deadline of April 30, and SAIC-Volkswagen plans to offer up to RMB 3.7 billion in subsidies for car purchases.

SAIC-Volkswagen offers up to $7,250 discount as China auto price war continues-CnEVPost

(A screenshot from SAIC-Volkswagen's website shows the automaker's marketing of discounts.)

A Volkswagen joint venture in China has started offering official discounts as the price war in the Chinese auto industry continues.

SAIC-Volkswagen is offering limited-time discounts of up to RMB 50,000 yuan ($7,250) on its entire model lineup, the Volkswagen-SAC joint venture announced yesterday.

The offer has a deadline of April 30, and SAIC-Volkswagen plans to provide up to RMB 3.7 billion in subsidies for car purchases, according to a poster on its website.

The campaign involves 20 SAIC-Volkswagen models, the vast majority of which are conventional internal combustion engine vehicles, that can enjoy discounts ranging from RMB 15,000 to RMB 50,000.

The Volkswagen Phideon, with an official guide price of RMB 343,000 to RMB 449,000, received an RMB 50,000 discount, while most other models received discounts of RMB 25,000 to RMB 30,000.

SAIC-Volkswagen is offering discounts of RMB 20,000 for the ID.3 pure electric vehicle and RMB 30,000 for both the ID.4 X and ID.6 X.

In addition to the cash discounts, SAIC-Volkswagen is also offering trade-in benefits of up to RMB 12,000, as well as a zero-interest entitlement for 2-to-5-year loans.

One of the reasons SAIC-Volkswagen chose to cut prices is that the company is responding positively to China's policies as well as the consumer environment, sources at the automaker were quoted as saying in a report by Beijing News today.

On the other hand, SAIC-Volkswagen was able to get closer to consumers after the marketing changes and respond more quickly to consumer feedback, the source said.

Last week, both SAIC-Volkswagen and FAW-Volkswagen, another Volkswagen joint venture in China, began offering discounts of up to 40,000 yuan on ID. family models as the price war in China's auto industry intensified.

Volkswagen is one of the top car companies in China in terms of vehicle sales. SAIC-Volkswagen's retail sales in February were 74,013 units, down 7.7 percent from a year earlier, with a 5.3 percent share of the Chinese auto market, according to data released earlier this month by the China Passenger Car Association (CPCA).

FAW-Volkswagen sold 110,511 units in February, up 5.3 percent year-on-year, with an 8 percent share in China.

($1 = RMB 6.8925)

More Chinese EV makers promise no price cuts as price war intensifies consumer wait-and-see sentiment

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Financially troubled Enovate reportedly close to getting life-saving money

Enovate has already owed its employees two months of salary arrears and its factory in Changsha, Hunan province, has shut down production this year, according to local media.

(Image from Enovate's Weibo)

Enovate Motors, the Chinese new energy vehicle (NEV) startup that announced late last year that it would build a production base in Saudi Arabia, is actually facing financial woes in its home market. However, the good news is that it is about to receive life-saving money.

Enovate is set to close a new round of funding in the near future, amounting to RMB 750 million yuan ($108 million), a report in local media Auto Time today said, citing multiple sources.

The money will arrive no later than March 24, one of the people familiar with the matter said. Another source with access to the financing said that it is indeed happening and that specific plans are being negotiated.

Enovate was formerly known as Zhejiang Dianka Automobile, which was founded in 2015 and produces mini electric vehicles (EVs). The Enovate brand was officially launched in November 2018.

In September 2020, the company's first model, the all-electric SUV Enovate ME7, was launched.

Enovate made its second model, the SUV Enovate ME5 with extended-range technology, available in China on July 13, 2021.

Enovate has closed eight financing rounds totaling more than RMB 11.5 billion, with the company's most recent financing round on October 13, 2020 for more than RMB 5 billion, Auto Time's report noted.

So far this year, Enovate has owed its employees two months of salary arrears, and its factory in Changsha, Hunan province, has shut down production this year, according to the report.

In addition to the Changsha manufacturing base, Enovate is also building factories in Shaoxing, Zhejiang and Nanning, Guangxi, with a planned total capacity of 220,000 units for the three production bases.

The money Enovate is about to receive will first be used for employee payroll and to push the plants back into production, the report said, citing an internal employee.

The company's performance in China has been weak over the past two years, with sales of just 1,778 units in 2021 and 5,321 units in 2022.

Enovate has begun targeting overseas markets as competition in its home market grows fiercer.

Enovate signed a contract with Sumou Holding in Saudi Arabia on December 7 to jointly build a NEV production plant here, as CnEVPost previously reported.

The two companies will form a joint venture that will make two phases of spending totaling about $500 million in Saudi Arabia to build a production and R&D base with an annual capacity of about 100,000 NEVs.

The facility, when completed, will be the first Chinese-branded NEV production base in Saudi Arabia, Enovate said at the time.

Enovate is another carmaker besides that has run into financial difficulties.

WM Motor has been in serious financial trouble, leading to disruptions in its operations over the past few months. On March 7, the company announced that it was addressing its challenges and was working hard to resume production.

WM Motor also has plans to enter Saudi Arabia, with an insider saying the company is planning a joint venture to set up a plant in the Middle East, according to an Auto Time report today.

The EV maker is currently in talks with the Saudi government and local wealth funds, and the exact timing of the plan is unknown, according to the report.

Chinese EV startup Enovate to build production base in Saudi Arabia with annual capacity of 100,000 units

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Financially troubled Enovate reportedly close to getting life-saving money

Enovate has already owed its employees two months of salary arrears and its factory in Changsha, Hunan province, has shut down production this year, according to local media.

(Image from Enovate's Weibo)

Enovate Motors, the Chinese new energy vehicle (NEV) startup that announced late last year that it would build a production base in Saudi Arabia, is actually facing financial woes in its home market. However, the good news is that it is about to receive life-saving money.

Enovate is set to close a new round of funding in the near future, amounting to RMB 750 million yuan ($108 million), a report in local media Auto Time today said, citing multiple sources.

The money will arrive no later than March 24, one of the people familiar with the matter said. Another source with access to the financing said that it is indeed happening and that specific plans are being negotiated.

Enovate was formerly known as Zhejiang Dianka Automobile, which was founded in 2015 and produces mini electric vehicles (EVs). The Enovate brand was officially launched in November 2018.

In September 2020, the company's first model, the all-electric SUV Enovate ME7, was launched.

Enovate made its second model, the SUV Enovate ME5 with extended-range technology, available in China on July 13, 2021.

Enovate has closed eight financing rounds totaling more than RMB 11.5 billion, with the company's most recent financing round on October 13, 2020 for more than RMB 5 billion, Auto Time's report noted.

So far this year, Enovate has owed its employees two months of salary arrears, and its factory in Changsha, Hunan province, has shut down production this year, according to the report.

In addition to the Changsha manufacturing base, Enovate is also building factories in Shaoxing, Zhejiang and Nanning, Guangxi, with a planned total capacity of 220,000 units for the three production bases.

The money Enovate is about to receive will first be used for employee payroll and to push the plants back into production, the report said, citing an internal employee.

The company's performance in China has been weak over the past two years, with sales of just 1,778 units in 2021 and 5,321 units in 2022.

Enovate has begun targeting overseas markets as competition in its home market grows fiercer.

Enovate signed a contract with Sumou Holding in Saudi Arabia on December 7 to jointly build a NEV production plant here, as CnEVPost previously reported.

The two companies will form a joint venture that will make two phases of spending totaling about $500 million in Saudi Arabia to build a production and R&D base with an annual capacity of about 100,000 NEVs.

The facility, when completed, will be the first Chinese-branded NEV production base in Saudi Arabia, Enovate said at the time.

Enovate is another carmaker besides that has run into financial difficulties.

WM Motor has been in serious financial trouble, leading to disruptions in its operations over the past few months. On March 7, the company announced that it was addressing its challenges and was working hard to resume production.

WM Motor also has plans to enter Saudi Arabia, with an insider saying the company is planning a joint venture to set up a plant in the Middle East, according to an Auto Time report today.

The EV maker is currently in talks with the Saudi government and local wealth funds, and the exact timing of the plan is unknown, according to the report.

Chinese EV startup Enovate to build production base in Saudi Arabia with annual capacity of 100,000 units

The post Financially troubled Enovate reportedly close to getting life-saving money appeared first on CnEVPost.

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