HiPhi has recently received a strategic investment from a Hong Kong-based organization that will help it resume operations and production, which could happen in late April or early May, according to local media.
(Image credit: CnEVPost)
Chinese electric vehicle (EV) brand HiPhi, which came to a halt at the end of February, has reportedly secured a new investment and will soon resume operations and production.
HiPhi has recently received a strategic investment from a Hong Kong-based organization that will help it resume operations and production, according to a report in local automotive media outlet Auto Home today.
The EV brand could officially resume operations and production in late April or early May, according to the report.
HiPhi's store in Ningbo, Zhejiang province, has already begun inviting potential customers to test drive its cars, and cleaning has begun at a HiPhi store in the heart of Shanghai that was originally planned to be transferred, the report noted.
HiPhi's department directors have already listed the manpower needed to resume operations and production, and are currently waiting to report back to their superiors before they can start approaching former employees, the report said.
The brand has even planned its first vehicle project after the resumption of production -- a new model based on the HiPhi Y, which will be equipped with additional features while lowering the price tag, the report said.
HiPhi launched the HiPhi Y on July 15, 2023, its third model after the luxurious HiPhi X and HiPhi Z.
The HiPhi Y is HiPhi's least expensive, currently starting at RMB 339,000 ($46,780). The HiPhi X and HiPhi Z start at RMB 570,000 and RMB 510,000, respectively.
HiPhi may have had smoother partnership talks with FAW Group, according to Auto Home.
FAW began due diligence on HiPhi in early April to get a full understanding of the brand's financial situation, legal relationships, and risk factors, the report said.
Founded in 2017, HiPhi is the EV brand of Human Horizons, targeting the premium EV market of RMB 500,000 to RMB 800,000
Instead of celebrating the start of work as other car companies did on February 18 -- the first working day after China's 2024 New Year holiday -- HiPhi announced a six-month production halt.
HiPhi founder Ding Lei said at the time that the brand's window for a turnaround was only three months at most, and that he would be actively working toward that end.
Ding met with Changan Automobile chairman Zhu Huarong in Chongqing, where the latter is headquartered, on February 27, and HiPhi brought the company's vehicles for the Changan team to experience.
Earlier this month, local media reported that Changan's EV unit Avatr had held talks with HiPhi and may have reached a partnership deal.
Subsequently, there were rumors on social media that Avatr had decided to acquire HiPhi, but this was denied.
($1 = RMB 7.2464)
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