On November 17, the 2024 Guangzhou International Auto Show was held as scheduled. However, HeChuang Auto, a new energy brand headquartered in Guangzhou, was absent from the show.

It is reported that HeChuang Auto also has issues with unpaid compensation for laid-off employees. Several former employees of HeChuang Auto's Shanghai branch stated that the company's original promise to pay N+1 compensation by October 31 had not yet been fulfilled.

Additionally, after a massive layoff in July, HeChuang Auto's Guangzhou headquarters now has only about 50 employees maintaining basic operations. Current employees will relocate to Nansha District, Guangzhou, and the company may undergo reorganization.

Not Just Negative News

In June this year, rumors spread that HeChuang Auto was imploding. Some car owners revealed on public platforms that they had been unable to receive maintenance or repairs for several months.

According to data, there were over a hundred new cases involving HeChuang Auto as a defendant in 2024, with 26.2% of them being contract disputes related to sales.

The company's financial issues have also led to the freezing of its equity in GAC Motor (Hangzhou) Co., Ltd.

These situations indicate that HeChuang Auto is currently facing severe operational and financial problems.

About HeChuang Auto

HeChuang Auto (English name: HYCAN) is a Chinese new energy vehicle brand established in April 2018 with its registered address in Nansha District, Guangzhou, and its legal representative being Li Zhihong. Jointly founded by GAC Group and NIO (which withdrew from the shareholder list in 2022), it was originally named "GAC NIO" and was renamed "HeChuang Auto" in 2021 after introducing cross-industry partner Zhujiang Investment Management Group.

HeChuang Auto's product line includes models such as the HeChuang V09, HeChuang A06, HeChuang Z03, and HeChuang 007, covering sedans, SUVs, and MPVs, with price ranges from 100,000 to 400,000 yuan.

In August 2023, cumulative deliveries of the HeChuang Z03, a pure electric SUV under HeChuang, exceeded 30,000 units. Although the HeChuang Z03 performed well as a single model, HeChuang Auto's overall sales volume was not high.