Hengchi Arrest Sparks Questions About Chinese Auto Giant’s Leadership
The Hengchi brand, affiliated with the Evergrande Auto group, has found itself at the center of a legal matter after reports from carnewschina.com indicated the chairman was detained in China. The publication cited accusations related to alleged illegal activities by the executive in question, but many specifics remain undisclosed at this time. This development comes amid broader scrutiny of corporate governance within the group and its automotive ventures, drawing industry observers to monitor potential impacts on Hengchi’s strategic direction and funding.
Evergrande Auto, the parent company behind Hengchi, recently made headlines again as it faced a halt in production activity due to a gap in fresh vehicle orders. The situation has particular resonance for Hengchi 5, the electric model that entered production in December 2022, as market demand and supply chain dynamics continue to influence output decisions. The pause underscores the broader challenges confronting new-energy vehicle programs within large conglomerates navigating liquidity pressures and shifting consumer interest.
In a separate development, the group confirmed that automobile manufacturing operations had resumed at the facility earlier this year after a period of disruption. Despite the Hengchi 5 arriving on the market later than initially planned, sales activity persisted, with approximately one thousand units reported as sold over a six-month window. This performance illustrates both the persistence of early adopter segments and the ongoing effort to ramp up production capacity to meet demand.
Meanwhile, developments pertaining to the Kaluga plant in Russia demonstrated another layer of the global automotive narrative. Russian officials, including Deputy Prime Minister and Minister of Industry and Trade Denis Manturov, suggested a restart of production at the former Volkswagen facility could occur in the first half of the current year. Manturov described a transition of ownership to a domestic entity, Art-Finance, which is closely linked to a local dealer group, Avilon. He noted that the new operator has already engaged a foreign technology partner to support manufacturing activities. The potential revival of the Kaluga site reflects ongoing efforts to preserve industrial capacity and preserve jobs in regional markets while adapting to changing global trade conditions.
Earlier reports also highlighted shifts at AvtoVAZ, with the automaker launching the Lada Vesta Sportline wagon at a price point around 2.3 million rubles, signaling continued product diversification within the Russian market. These moves—across different brands and regions—illustrate how domestic and foreign partnerships, as well as pricing strategies, are shaping competitive dynamics in the global automotive sector.