(Yicai Global) Aug. 19 -- The president of troubled property developer China Evergrande Group’s electric vehicle arm has denied a media report that the automaker may be sold, saying it is in fact in the process of bringing in strategic investors.

Liu Yongzhuo said local governments and many large companies have shown interest in investing in the Hengchi brand of China Evergrande New Energy Vehicle Group, The Paper reported yesterday.

All of Guangzhou-based Evergrande NEV’s assets are in Hengchi Automobile Trading.

Hengchi Auto may be acquired by another car company due to its parent company's financial difficulties, Jiemian News reported on Aug. 17, citing people familiar with the matter. Last week, Hengchi's plant in Tianjin was reported to be planning to stop production due to a shortage of materials. 

The factory is operating normally and mass production of Hengchi-branded vehicles will begin next month, Liu was reported as saying.

On July 5, Hengchi Auto announced that its first mass-produced model, the Hengchi 5 electric luxury sport-utility vehicle, would go on sale the next day. On July 20, it said orders have reached almost 37,300.

Editor: Emmi Laine, Xiao Yi