After halting production for a year and teetering on the brink of collapse, Chinese premium EV brand HiPhi is preparing a return. This time under new ownership. Lebanese EV startup EV Electra acquired a majority stake in the embattled automaker. The stage is set for a potential reboot of one of China’s most ambitious electric car brands.
Founded in 2017, HiPhi once drew international attention with its ultra-futuristic electric models, such as the HiPhi X, Y, and the striking Z GT, known for features like suicide doors and a robotic infotainment screen. Its high-end designs and tech-forward interiors earned it the moniker “the Maybach of EVs” in Chinese media. As a culmination, the Z won the challenging cold range test from the Norwegian Automobile Association, a victory for its proprietary thermal management system, an in-house development from former owner Human Horizons.
New joint venture
The steep rise was followed by a deep fall. Financial turbulence derailed the stratospheric ambitions. Human Horizons suspended production in February last year, citing a liquidity crisis. By summer, the company entered bankruptcy reorganization, burdened by liabilities totaling more than $2.2 billion. The company emerged as one of the victim Chinese car companies, surfing an economic marketplace expanding too fast and overshooting its organic growth, not to mention the accompanying price war.
Hiphi disappeared in the background, overshadowed by the success of tall giants like BYD, SAIC, and Geely—until now. According to the Chinese corporate registry platform Tianyancha, a new joint venture called Jiangsu HiPhi Automobile was officially registered this week.
The new entity has a registered capital of approximately $143 million. EV Electra holds a 69.8 percent stake, with HiPhi’s founder and previous parent company, Human Horizons Technology, retaining 30.2 percent. The founder and CEO of EV Electra (Jihad Mohammad) is listed as the legal representative.
Luring back the former workforce
With EV Electra taking majority control, HiPhi’s outlook has shifted. The company is preparing to restart production of its existing models at its original facility in Yancheng. The plant, which boasts an annual production capacity of 150,000 units, has already launched an environmental assessment in anticipation of resuming operations. According to local media outlets, former employees are being invited back, albeit with a 20 percent salary cut.
EV Electra, also founded in 2017, brands itself as the Middle East’s first electric vehicle manufacturer. While headquartered in Lebanon, the company claims to operate offices in Canada, Italy, Germany, Turkey, and Sweden, though its online presence and past controversies have raised eyebrows.
Reports in Swedish media last year accused the firm of misrepresenting other automakers’ designs as its own. EV Electra also acquired the rights to the Emily GT project from NEVS, the successor to Saab, and previously announced a $500 million deal to acquire a majority stake in Detroit Electric.
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Despite its somewhat murky past, EV Electra has quickly integrated HiPhi’s product lineup into its global branding, showcasing the X, Y, and Z models already on its website. The company has hinted at further ambitions, including the acquisition of a storied Italian car factory to increase its European manufacturing capacity. If this materializes, it could bring HipHi back to Europe with more favorable pricing.
Whether the brand can regain its place in a hyper-competitive EV market remains to be seen. For now, only Rolls-Royce succeeds in making a case for emission-free ultra-luxury GTs. Cadillac struggles to find 25 customers for its high-end EV Celestiq, while Faraday Future only sold 20 cars over the past two years. Lucid, also funded by Saudi Arabia, managed to boost sales by 71% last year, but the loss of $3 billion ousted CEO Peter Rawlinson.
