This period is seen as a last ditch effort to avoid complete bankruptcy. Chinese law requires companies to do everything they can to get back on their feet. But the chances of recovery are slim. HiPhi has suspended operations since February 2024. Employees have not received their salaries for months. Despite this, the company has struggled to get back on track. The price war in China has taken its toll on the young manufacturer.
Competition too intense in China
Founded in 2017, Human Horizons quickly positioned HiPhi as a luxury electric car brand. The very first model, called HiPhi X, was launched in 2020. The Chinese firm had a lot of trouble selling it. In 2023, the arrival of a new model called HiPhi Y, more affordable, helped to temporarily boost sales, but more would have been needed to stabilize the company.
Two Chinese giants almost took over the activities of the young company. Changan and FAW were apparently in the running. Today more than ever, the future of HiPhi is uncertain. The parent company has 6 months to try to find funds and restart production. But with such competition, the equation seems almost impossible. 200 Chinese manufacturers are still trying to share the electric market in China.
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