Introduction HiPhi is an electric vehicle brand owned by Human Horizons, founded by Ding Lei and headquartered in Shanghai. The brand made its debut in the automotive industry with the launch of the HiPhi X on July 31, 2019. However, by February 2024, the company faced significant financial challenges, leading to a six-month production halt.
| Website | hiphi.com |
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History and Development
Foundation and Early Years Founded in 2017, Human Horizons established its Operations and R&D Center in Pujiang, Shanghai, China. In 2019, the company signed a cooperative manufacturing agreement with Yueda Group and Dongfeng Yueda Kia (DYK) to produce HiPhi vehicles at a manufacturing facility in Yancheng, Jiangsu Province.
HiPhi introduced its first production car, the HiPhi X, in October 2020, with customer deliveries starting in May 2021. The company subsequently launched the HiPhi Z, a 5-door luxury GT based on the same platform as the HiPhi X. The model was first unveiled in pre-production form in November 2021, with the final version showcased at the Chengdu Motor Show in August 2022. Deliveries began in early 2023. In April 2023, HiPhi revealed its third production model, the HiPhi Y, at the Shanghai International Show, marking its entry into the medium-sized electric SUV segment.
In an effort to expand internationally, HiPhi established operations centers in Munich, Germany, and Oslo, Norway, aiming to penetrate the European market.
Business Crisis and Production Suspension
Financial Difficulties On February 7, 2024, HiPhi announced severe financial difficulties, leading to delayed salary payments, canceled year-end bonuses, and employee layoffs. Employees were urged to find alternative employment as the company struggled to manage its financial commitments.
On February 18, 2024, HiPhi officially announced a six-month suspension of production and operations. Employees were informed of significant salary reductions, with payments reduced to 70% before March 15 and subsequently to only the local minimum wage standard. Employees were also restricted from accessing HiPhi’s headquarters in Shanghai and its factory in Zhenjiang, Jiangsu.
During this period, a large number of HiPhi’s directly operated stores closed, while franchise dealers were limited to selling existing inventory. The company’s video content was repurposed to livestreaming sales to generate revenue for after-sales support. Additionally, customers who had placed orders before the Spring Festival were unable to receive their vehicles due to production stoppages, and HiPhi was unable to refund deposits.
Rescue Efforts and Potential Revival HiPhi’s parent company, Human Horizons, sought financial support to revive its operations. On May 16, 2024, it received $1 billion in financing from i Group Inc. Reports indicated that Human Horizons signed a strategic cooperation agreement with i Group, with expectations of resuming work and production.
Despite the financial injection, Human Horizons Holdings (Shanghai) Co., Ltd. was listed as a “dishonest person subject to enforcement” in May 2024. CEO Ding Lei faced multiple restrictions on high-consumption activities, and several affiliated companies of Human Horizons were flagged for abnormal operations. On August 8, 2024, the People’s Court of Yancheng Economic Development Zone accepted the bankruptcy pre-reorganization application filed by Human Horizons (Jiangsu) Technology Co., Ltd.
By August 19, 2024, HiPhi announced plans to gradually resume the supply of spare parts to after-sales service centers and authorized Yueda subsidiaries to purchase HiPhi auto parts for customer service support.
HiPhi Vehicle Models
Production Cars:
- HiPhi X: Full-size luxury SUV
- HiPhi Z: High-performance luxury sports car
- HiPhi Y: Mid-size SUV
- HiPhi A: Limited edition luxury sports car based on HiPhi Z
Concept Vehicles:
- Concept H (2018): Hyper-velocity sports car
- Concept A (2018): Modular transportation pod
- Concept U (2019): Ultimate Mobility concept
- HiPhi 1 (2019): Prototype of HiPhi X
Sales Performance
HiPhi’s annual sales figures have been relatively modest in comparison to established EV brands:
- 2021: 4,237 units
- 2022: 4,394 units
- 2023: 8,681 units
Conclusion
HiPhi, despite its ambitious entry into the high-end electric vehicle market, has struggled with financial sustainability. The company’s innovative approach and technologically advanced vehicles have attracted attention, but operational and financial missteps have hindered its long-term viability. With ongoing restructuring efforts and financial backing from i Group Inc., the future of HiPhi remains uncertain, yet hopeful for a potential revival.
