Evergrande looks to sell stake in EV unit

China Evergrande Team confirmed this week it is in early-stage talks with nearby smartphone maker Xiaomi Corporation to market section of its stake in its electrical vehicle (EV) subsidiary, in accordance to nearby stories.

The residence group’s EV startup, China Evergrande New Strength Vehicle Team, is stated on the Hong Kong Inventory Exchange and has Chinese net large Tencent and ride-hailing services Didi between its essential traders. Previously this calendar year is raised CNY26bn (US$4bn) in a share placement to assistance fund its entry into the EV industry.

Reuters described previously this week that Evergrande has held talks with Xiaomi and other prospective traders to market section of its 65% stake in its EV subsidiary.

Xiaomi would only validate that it has held collaboration talks with a range of auto companies, but explained it has nevertheless to make a decision whether to purchase a stake in 1 of the companies.

At this year’s Shanghai Automobile Show Evergrande unveiled 9 electrical vehicle prototypes under its Hengchi brand name, which includes sedans, MPVs and SUVs, with out furnishing a timetable for mass production.

China Evergrande Team experienced invested about CNY47bn in the new electrical power vehicle sector by the end of 2020, which includes almost CNY25bn in an headquarters and R&D centre in Shanghai.