(Reuters) -The electric vehicle unit of embattled real estate developer China Evergrande said on Tuesday it expected to report a bigger loss for the first half of 2024, reflecting an increase in provision for impairments.

China Evergrande New Energy Vehicle estimated a consolidated net loss of about 20.25 billion yuan ($2.84 billion) for the six months ended June 30, compared with 6.87 billion yuan in the same period a year earlier.

The EV unit, which is in talks with a potential buyer to take a stake in the company, signaled an impairment provision of around 16.74 billion yuan for the half year.

"The company has increased the provision for impairment loss on receivables from the subsidiaries, associates, and joint ventures of China Evergrande," the electric vehicle maker said.

A Hong Kong court in January had ordered the liquidation of property giant China Evergrande Group.

China Evergrande New Energy is scheduled to report its half-year earnings on Aug. 30.

The EV maker had produced only 1,700 of its Hengchi EVs as of the end of 2023. Its Tianjin factory has suspended production since the start of this year.

($1 = 7.1237 Chinese yuan renminbi)

(Reporting by Aaditya Govind Rao in Bengaluru; Editing by Sriraj Kalluvila)