Evergrande Group formed a Joint Venture in Germany with Hofer Powertrain, an outstanding system supplier of efficient powertrain solutions in the fields of electrification, hybridization, and internal combustion power.

The new Joint Venture will focus on developing advanced powertrain system consisting of motor, inverter and gearbox, and aim to build a world-class manufacturing base in China. Hofer Powertrain is the system supplier of efficient powertrain solutions in the fields of electrification, hybridization, and internal combustion power. As an established and independent partner of the mobility industry, hofer powertrain has been providing pioneering technologies and products to companies worldwide for over 30 years. Accomplished by their experienced teams of experts specialized in the development, industrialization, and production of powertrain systems.

The joint venture, called Evergrande Hofer Powertrain GmbH, will be based in Stuttgart and 67% of the JV will be owned by Evergrande. Evergrande did not disclose the cost of the investment. The German Johann Hofer is to become head of the company.

Johann Hofer founded Hofer Powertrain in 1980 and is headquartered in Nuremberg. The company describes itself as a “system supplier for efficient drive solutions” in the areas of electrification, hybridization and combustion – it is clear in which part Evergrande is interested. Customers include Mercedes-Benz, BMW, Volkswagen and Lamborghini.

Hofer is not directly one of Evergrande’s takeovers, but the list of new partners is impressive: In January, Evergrande Health became the new main owner of NEVSand also acquired 20 per cent of the shares of the Swedish sports car manufacturer Koenigsegg. “Evergrande aims to become the largest and strongest electric vehicle group in the world within three to five years,” company boss Hui Ka Yan was quoted in March.

The company plans to set up a production facility for no less than one million electric cars per year and two further plants for the production of batteries with a total capacity of 50 GWh per year. Evergrande is investing around 23 billion dollars in the three plants. “Evergrande Group” (a heavy shareholder of Faraday Future) is the new main owner in NEVS AB.