Core Viewpoint - The downfall of Evergrande and its founder Xu Jiayin has led to the bankruptcy and liquidation of several subsidiaries under Evergrande Auto, highlighting the severe financial distress of the company and the automotive sector it attempted to penetrate [1][3][4]. Group 1: Bankruptcy and Liquidation - Evergrande Auto has officially entered bankruptcy proceedings, with the Tianjin court accepting a petition for the liquidation of Evergrande New Energy Vehicle (Tianjin) Co., which owns the only production facility for Evergrande Auto [3][4]. - The Tianjin factory has been non-operational since January 2024, and the bankruptcy announcement indicates that Evergrande Auto's core production assets will be disposed of to repay creditors [4]. - This is not the first instance of bankruptcy for Evergrande Auto, as its Shanghai subsidiary was placed under management for bankruptcy in April 2023, and the Guangzhou company was ordered to undergo bankruptcy restructuring in June 2023 [5][6]. Group 2: Ambitions in the Automotive Sector - Xu Jiayin, once the richest man in China, entered the electric vehicle market in 2017, aiming to leverage Evergrande's financial strength to become a significant player in the automotive industry [7][9]. - At a global strategic partnership summit in 2019, Xu Jiayin famously articulated his ambitious 15-character mantra for car manufacturing, which was met with both applause and laughter from industry leaders [9]. - Evergrande invested heavily, acquiring multiple companies in the automotive supply chain, including NEVS and Protean Electric, with expenditures reportedly reaching hundreds of billions [9]. Group 3: Financial Losses - Evergrande Auto has reported staggering financial losses from 2019 to 2023, with net losses of 44.26 billion, 73.94 billion, 562.7 billion, 276.6 billion, and 119.3 billion respectively, totaling nearly 1.1 trillion in losses over five years [10][12]. - In the first half of 2024 alone, the company incurred an additional loss of 202.56 billion, suggesting that total losses could exceed 1.4 trillion by the end of 2025 [10][12]. - Despite these losses, Evergrande Auto has only delivered over 1,429 electric vehicles, resulting in an average loss of nearly 1 billion per vehicle sold, marking it as one of the largest loss-makers in the new energy vehicle sector [12]. Group 4: Overall Impact - Following the financial collapse, Evergrande Group's total liabilities have reached 2.4 trillion, equating to a burden of approximately 1,700 per person for China's 1.4 billion citizens [14]. - The downfall of Evergrande and Xu Jiayin's automotive ambitions has left a legacy of failure, with the company facing inevitable bankruptcy and liquidation [14].