Introduction

Rumors about the revival of failed new energy vehicle (NEV) startups keep popping up, but a true resurrection is far from a walk in the park.

The NEV industry is currently going through a ruthless shakeout phase.

According to incomplete statistics, over 80% of new entrants in the car - making field have quietly left the market. For instance, once - popular brands such as Byton, Leading Ideal, WM Motor, and Aiways have either gone bankrupt or undergone restructuring. Even Byton, which once shone brightly at the Consumer Electronics Show (CES), went bankrupt without ever launching a mass - produced vehicle. Leading Ideal, known as the "King of Low - Speed Electric Vehicles," also filed for bankruptcy after a failed transformation attempt.

However, many of these "tenacious" players are still trying to make a comeback. Some of the exited players are exploring various ways to re - enter the race. Recently, WM Motor released a "White Paper to Suppliers," signaling its return. Jiyue submitted a pre - reorganization application. There are rumors that HiPhi has received a capital injection from Middle Eastern investors. Hozon Auto, the parent company of Neta, has attracted interested investors for restructuring.

These once - popular but now bankrupt or restructured new forces often make the headlines with revival rumors. Yet, a resurrection is no easy task. If any of the fallen new forces have a shot at revival, it is likely to be WM Motor, Jiyue, HiPhi, or Neta. So, rationally speaking, if we were to pick the one with a better chance of revival, who would it be?

WM Motor currently shows the strongest signs of "revival." In September 2025, WM Motor officially announced its return through a "White Paper to Suppliers." This white paper not only outlined a production resumption plan but also set an ambitious goal of achieving a production capacity of one million units by 2030.

WM Motor's restart depends on capital infusion and resource support from restructuring investors. Shenzhen Xiangfei Automobile Sales Co., Ltd., which took over after the bankruptcy restructuring, has committed an initial investment of 1 billion yuan ($138 million). This investment is earmarked for equipment upgrades, supply chain restoration, and product development.

The low - cost reuse of mature assets allows WM Motor to skip the pain of starting from scratch. The new WM Motor has prioritized resuming the production of two classic models, the EX5 and E.5, as their supply chain systems are already in place. Over 90% of the components for the first month's production can be sourced from existing inventory.

Meanwhile, Jiyue Automobile (formerly Jidu Automobile) officially announced on November 25, 2025, that it had submitted a pre - reorganization application, which was formally accepted by the Shanghai No.3 Intermediate People's Court. It's worth noting that this pre - reorganization aims to bring in new strategic investors rather than go through bankruptcy restructuring.

However, Jiyue Automobile finds itself in a rather awkward position. Previously, online reports claimed that Baidu had sent a financial team to conduct due diligence at Jiyue, only to find a staggering 7 billion yuan ($966 million) financial hole. To revive Jiyue, investors would not only need to fill this financial gap but also invest heavily in rebuilding the team, re - establishing sales channels, and rebranding the company.

Additionally, HiPhi seems to be the first domestic NEV manufacturer to attempt a "revival." On May 22, 2025, Jiangsu HiPhi Automobile Co., Ltd. was established with a registered capital of $143.26 million. This capital was funded by EV Electra Ltd. and Human Horizons, which hold 69.8% and 30.2% stakes, respectively.

EV Electra, an electric vehicle company headquartered in Beirut, Lebanon, reportedly plans to invest $1 billion in Human Horizons' restructuring and seek controlling stakes. The company has committed to providing overseas procurement orders of no less than 100,000 vehicles or $3 billion over the next three years.

On August 4, 2025, Hozon New Energy Automobile, Neta's parent company, issued a "Public Solicitation for Restructuring Investors." This solicitation attracted over 50 interested parties and more than 9,600 views. Additionally, Neta paid full salaries to its employees in July.

The "revival" of these automakers is not a mere coincidence but the result of a combination of capital support, resource reuse, and policy coordination. Whether it's WM Motor's initial 1 billion yuan investment or HiPhi's Middle Eastern capital infusion, these factors play a pivotal role.

However, capital infusion is not a magic bullet. Take WM Motor as an example; its initial 1 billion yuan investment is just a drop in the bucket compared to the 26 billion yuan ($3.6 billion) in historical debt. WM Motor has chosen the low - cost reuse of mature assets, which allows it to skip the pain of starting from scratch. For instance, it prioritized resuming the production of the EX5 and E5 models due to their established supply chain systems.

On the production front, the Wenzhou base rebuilt its team using a "recall of veteran employees + new hires" model. A significant portion of the 400+ employees are veterans. By leveraging their mature craftsmanship, the production line's yield rate was quickly raised to industry norms.

Meanwhile, policy support and ecological coordination from local governments provide crucial external guarantees for revival. The Wenzhou Municipal Government not only set up a dedicated working group to assist WM Motor in coordinating the resumption of supplies from 29 local parts suppliers but also facilitated financial institutions to provide 500 million yuan ($69 million) in credit to ease liquidity pressure.

This "government - enterprise collaboration" model effectively resolved the supplier trust crisis. After clarifying the debt repayment plan, over 80% of historical suppliers signed cooperation agreements.

Of course, even if these companies manage to revive, the road ahead is still full of challenges.

Market competition has reached a fever pitch. As "last - round" players like WM Motor and Jiyue strive to enter the "next - round" arena, they must face a harsh reality: today's competitive landscape has rapidly escalated from "internal competition among new forces" to an "industry - wide melee."

Especially considering that leading new forces like NIO, XPeng, and Li Auto have achieved phased goals and crossed the survival threshold. Meanwhile, Leapmotor set a new monthly delivery record, becoming the first new force to exceed 70,000 monthly sales.

For new forces, a stark and unforgiving "survival line" looms before all players: scalable profitability. Only leading companies can afford to talk about economies of scale. Their "sell one, lose one" business model may be seen as "strategic losses" in the first half, but in the second half, they have a better chance of breaking through. In contrast, players lacking self - sufficiency and relying solely on external capital will be the first to exit the market.

For revived companies like Jiyue, rebuilding brand trust poses another major challenge. Historical issues such as system failures in existing owners' vehicles and unpaid supplier debts remain unresolved. To succeed in their second attempt, new forces must differentiate themselves, address market pain points, and rebuild their brand image through technology and products.

From WM Motor's capital infusion, resource reuse, and policy coordination to HiPhi's Middle Eastern capital entry and Neta's positive signals from over 50 interested investors, the combination of capital and resources has become the key to revival.

However, reality often falls short of ideals. Revival merely grants entry tickets; the real competition has just begun. After entering the market, many new forces will still face previous issues: lack of core competitiveness, insufficient self - sufficiency, withdrawal of external capital, and even the daunting task of filling previous financial holes. The future awaiting them will only be more brutal.

Editor - in - Chief: Yang Jing Editor: He Zengrong

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