Human Horizons, who owns HiPhi, filed for bankruptcy after failing to cover its debts. The company entered a court-drive reorganization phase, as a final effort to be saved. HiPhi halted production last February, with all rumored takeover deals being unsuccessful. The EV market in China is very competitive, making it extremely hard for automakers to stay afloat.
The problems for HiPhi surfaced in February, when the premium EV startup suspended production for six months, following a devastating sales performance in 2023 with less than 8,000 deliveries. The company promised to pay employees for a few weeks before downgrading their salary to the minimum wage. HiPhi Y In April, Changan-owned Avatr declined rumors about reaching a deal with HiPhi. It has also been rumored that the company conducted talks with FAW Group, although nothing was made official.