Chinese HiPhi has filed for bankruptcy

The struggling Chinese premium electric car brand HiPhi has filed for bankruptcy. Due to a lack of sales, it is unable to pay suppliers. Human Horizons, the brand’s manufacturer, has filed for restructuring in Yangcheng, China.

Founded in 2018 with grand ambitions, HiPhi wanted to push the EV envelope with two models with more than 600 hp, a 600 km range, and a price tag of more than € 100,000. The gamble didn’t pay off.

Bankruptcy

Human Horizons, the start-up that originated the HiPhi brand, is throwing in the towel. After stopping all activity in February, the group has now filed for restructuring to the court of Yangcheng, China. Human Horizons claims that assets could no longer cover the debt in April and, therefore, it meets all the conditions for bankruptcy.

Reaching for the stars

HiPhi was founded in 2018 by the Human Horizons Group and targeted Europe for expansion. It arrived on our shores with two striking models, the X SUV, and the Z GT saloon. Both grabbed the attention of the European public with their impressive stats and features. It even recently bumped it all up with the HiPhi A, a 1287-hp four-door electric hypercar.

However, the brand didn’t manage to break the market. Worse still, it didn’t even succeed in its local market. Production has been suspended since February after HiPhi closed its showrooms and failed to pay suppliers. All in all, the manufacturer delivered fewer than 8,000 cars last year.

The Wolves of China

The Chinese market for electric cars is starting to look more and more like a jungle, where survival of the fittest is critical. China’s subsidizing of electric cars and the emergence of new brands have created a local market that is eating itself alive. Export seems to be the only hope, but not all brands will make it.

Out of the 150 currently available brands, only BYD and Li Auto are said to be profitable. The rest, including big names like Nio or Xpeng, are losing money. HiPhi is one of many, but it won’t be the last new Chinese car brand to go bust.