China's Evergrande EV Unit Asked to Return $262.4 Million in Subsidies, Grants

May 23, 2024, 02:29 AM

China Evergrande New Energy Vehicle (NEV), the electric vehicle unit of the troubled real estate developer China Evergrande Group, has been asked by local government bodies to return $262.4 million in subsidies. This demand comes after the company failed to commence mass production of its anticipated electric car. The repayment request was detailed in a stock exchange filing, revealing that the subsidies were linked to an investment deal signed in 2019. The total amount demanded for repayment is 1.9 billion yuan (USD 262 million). The company is required to refund USD262.3 million of grants and subsidies.