(Reuters) – China Evergrande New Energy Vehicle said on Monday it is struggling to attract strategic investors amid a severe liquidity crisis, which has hampered its operations and delayed essential audits for 2024.
“The tough conditions under which the new energy vehicle in Mainland China is operating has certainly not facilitated this (securing a strategic investor) process,” the firm said.
The company, an electric vehicle (EV) unit of debt-laden property developer China Evergrande, said that it is still looking for strategic investors as it seeks solutions to stabilize operations and address its liquidity crisis.
While it has also reduced its headcount to cut costs, it said its limited funds are now focused on maintaining basic operations including maintenance of its production plant and machinery.
The EV maker had initially planned to compete with Tesla and even held a market valuation surpassing that of Ford Motor but has since become entangled in the debt crisis affecting its parent.
(Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)
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