Human Horizons, the Chinese manufacturer behind the HiPhi line of electric vehicles, has entered bankruptcy proceedings. Reports from CarNewsChina indicate the move followed a formal filing for preliminary arrangements with the court, a step that acknowledges the company cannot satisfy its obligations with existing assets and therefore is pursuing bankruptcy protection. The company has stated that it will work with its leadership and creditors over the next months to safeguard assets while seeking strategic investors to preserve value during the restructuring process.
In a broader update, the group announced that in February 2024 a transition began at its premium HiPhi operations. The company, which has enjoyed a following in several markets, including parts of Russia, confirmed a six month suspension of production at its lone manufacturing site in Yancheng, located north of Shanghai. The shutdown was intended to conserve resources while maintaining a dialogue with staff and partners about the path forward. A circulating internal memo, distributed to workers via the WeChat platform, outlined that production would halt for six months beginning February 18, and that factory access would be restricted for personnel. The memo also indicated that January salaries were to be settled by the end of February, with a separate determination to be made on pay for February days worked as the shutdown continued.
New developments soon followed. It emerged that HiPhi had secured an investor, the U.S.-based firm iAuto, in a deal valued at around US$1 billion. The closing of the investment was reported to have occurred on May 10, but questions quickly arose about iAuto’s financial stability and the availability of the committed funds. Market observers noted that such concerns could influence the pace and effectiveness of the restructuring process, alongside ongoing scrutiny of the overall strategic fit and timeline for HiPhi’s future production plans.
Earlier reports also highlighted a separate market development involving the DFSK ix5 crossover in Russia, where its price had seen a notable reduction of about 600,000 rubles. This shift occurred amid a competitive pace in the regional EV market and provided context around pricing dynamics in areas closely connected with HiPhi’s geographic footprint. Analysts and observers have pointed to currency movements, import duties, and shifting demand as factors shaping price trajectories in a market that has shown resilience despite broader economic headwinds. The interplay between these market signals and HiPhi’s ongoing restructuring remains a focal point for investors and industry watchers alike.
As the company navigates bankruptcy proceedings, the focus remains on safeguarding critical assets and stabilizing operations while pursuing strategic partnerships that could underpin a return to production under revised terms. Industry commentators emphasize the importance of transparent communication with employees, suppliers, investors, and regulators to maintain confidence during the restructuring process. The situation underscores the challenges faced by premium EV manufacturers operating in highly competitive markets, where capital discipline and clear execution plans are essential to emerge stronger from financial distress. Attribution for market and company updates comes from CarNewsChina and associated industry reporting.