China Evergrande, through its subsidiary Evergrande Health, has revealed plans to enter the highly lucrative new energy market in China.
The company mentioned over the weekend that it was going to be unveiling its first "next-generation" fully electric vehicle at the upcoming Geneva International Motor Show in March next year.
The company, China's third-largest developer, mentioned that it was going to invest around $846.4 million in the second half of the year for its new energy vehicle project.
Some investors had expressed concerns about the company's plan given that it had reported a substantial $280 million loss for the first six months of the year.
Evergrande Health reportedly began its foray into the new energy vehicle segment back in June of last year. Since then, the company had invested more than $1.96 billion to develop its own electric vehicle product.
The substantial investment into the new endeavor had resulted in the company reporting a loss for the first half of 2019.
According to the company's vice chairman, Peng Jiangjun, the substantial investment will apparently be well worth it when the company will achieve its goal of becoming a new energy vehicle manufacturer.
The executive explained that the company's access to large capitals is its greatest advantage in the highly competitive sector.
During the company's briefing on its interim results, executives revealed that the aim of the company is to become one of the world's largest and strongest producers of new energy vehicles. Evergrande Health aims to achieve this goal within three to five years, "at all costs."
The company has used its massive resources to acquire several companies specializing in different electric vehicle components. Earlier in the year, Evergrande Health had acquired National Electric Vehicle Sweden (NEVS) for $930 million.
Around the same time, the company bought a 58 percent stake in the Chinese lithium-ion battery manufacturer Shanghai Cenat New Energy. In March, the company purchased a 70 percent stake in the Netherland-based electric motor company E-Traction for $70 million.
At the event, executives also revealed the company's $150 million joint venture partnership with luxury sports car maker Koenigsegg Automotive. The partnership is aimed at developing a new fully electric vehicle that will be making its debut in Geneva next year. The company's boldly proclaimed that it will become a formidable challenger to other electric carmakers such as Tesla.
Evergrande Health did not reveal any details regarding the planned vehicle's pricing, possible range, and other specifications. The company did, however, mention that it will be making changes to its manufacturing facilities in Shanghai and Guangzhou to accommodate the new vehicle.
