Shanghai – The electric vehicle (EV) market in China is fiercely competitive, with approximately 300 local EV manufacturers vying for customers, according to Gregor Sebastian, an analyst at the Mercator Institute for China Studies (MERICS). Many of these companies face the threat of bankruptcy, and some have already succumbed, including WM Motor.
HiPhi’s Parent Company Human Horizons Nears Insolvency: Six Months for Restructuring
Human Horizons Group, the company behind the premium brand HiPhi, is the latest to face financial difficulties. According to a report by CarNewsChina, Human Horizons filed for bankruptcy in early August. However, this does not mark the definitive end for Human Horizons.
The People’s Court of Yancheng Economic and Technology Development Zone determined that the company could not meet its debt obligations. Over a six-month period, which can be extended by three months if necessary, the company will work with bankruptcy administrators to secure its assets and seek potential investors. Only if this restructuring phase fails will the company be liquidated.
HiPhi on the Brink: Slim Chances for Recovery
The financial troubles had been brewing for months. In February, Human Horizons announced that production at the only HiPhi factory in Yancheng, near Shanghai, had been halted. CarNewsChina reported that workers were barred from entering the factory, and wages were cut and delayed. The production halt was set to last six months.
There was a brief glimmer of hope for the company when the Chinese automaker Changan entered negotiations with Human Horizons for a potential acquisition. However, these talks ultimately fell through.
Insolvent Car Brand: No Registrations in Germany Yet
Despite its financial woes, HiPhi had ambitious plans for expansion. At the 2023 IAA automotive show, HiPhi made its debut in Germany, opening its first European shop at Munich Airport in September last year. “The opening of our first European HiPhi Hub is a significant milestone as we bring China’s best-selling premium EV brand to an entirely new market,” said HiPhi co-founder and CTO Mark Stanton at the time. A second HiPhi Hub was opened in Oslo in October.