By / Cheng Rui

Produced by / Five-Star Car Review

On May 22, Jiangsu HiPhi Automobile Co., Ltd. (hereinafter referred to as "Jiangsu HiPhi"), with a registered capital of US$143 million (approximately RMB 1.032 billion at current exchange rates), was established. Its legal representative and chairman is Jihad Mohammad.

Jiangsu HiPhi is a joint venture between EV Electra Ltd. (hereinafter referred to as "EV") and Human Horizons (Jiangsu) Technology Co., Ltd., holding shares of 69.8% and 30.2%, respectively. EV, a Lebanese electric vehicle manufacturer, is a startup company.

An insider close to HiPhi Automobile speculates that the formation of this new entity is primarily aimed at liquidating existing inventory, and the funds secured do not suffice for resuming production. "To date, no failed automobile brand has successfully revived. HiPhi Automobile has struggled to secure a foothold in the domestic market and can only pin its hopes on overseas expansion."

HiPhi Automobile, which has been absent from the automotive market for a considerable period, has reemerged in the spotlight. In this collaboration, EV contributed a capital subscription of US$100 million (approximately RMB 721 million at current exchange rates), while Human Horizons contributed US$43.2665 million (approximately RMB 311 million at current exchange rates). Jihad Mohammad also serves as the chairman of Jiangsu HiPhi.

According to Wikipedia, EV focuses on electric vehicle manufacturing in the Middle East and employs approximately 300 individuals. Founded by Jihad Mohammad, the company is regarded as the first electric vehicle manufacturer in Lebanon and the Arab world. In 2021, EV launched the QuDS Rise, billed as "Lebanon's first electric sports car," showcasing its ambitions in the electric vehicle sector. Reports indicate that Jihad Mohammad visited Shanghai just days before the establishment of Jiangsu HiPhi. Moreover, three HiPhi Automobile models have discreetly appeared on EV's official website, hinting at their imminent market entry.

Regarding the resumption of production following the establishment of the new company, a HiPhi Automobile spokesperson responded, "There is no news at present. The official has not announced any information on resuming production, and orders are not yet open. The company is still in the process of reorganization." The spokesperson also revealed that the 400 hotline and frontline after-sales personnel across the nation are still active. Regarding whether the factory has initiated an environmental impact assessment for resuming production, the staff member emphasized that official news should prevail.

On May 23, a person close to HiPhi Automobile revealed that the company has reached out to some former employees about returning to work, albeit with potential salary reductions. An environmental impact report recently disclosed by the Yancheng Economic and Technological Development Zone indicates that a renovation project for a Yueda Kia factory has initiated an environmental impact assessment. This factory previously served as a contract manufacturer for HiPhi Automobile.

According to the environmental impact report, this renovation falls under the new energy vehicle manufacturing industry, with a designed production capacity of 150,000 passenger vehicles, encompassing models X, Y, and Z, consistent with the existing scale. Models X and Y have a designed annual capacity of 37,500 units each, while model Z has a designed annual capacity of 75,000 units. The illustrations in the environmental impact report clearly depict these three models as corresponding to HiPhi's HiPhi X, Y, and Z models.

Currently, HiPhi Automobile has not officially announced its collaboration with EV. The most recent news on the official website dates back to September 2023, featuring a visit by Bandar Al-Khulaifi, Minister of Industry and Mineral Resources of Saudi Arabia, and Khalid Mudafar, Deputy Minister, to the Shanghai Operations Center of Human Horizons HiPhi Automobile. They met with Ding Lei, Chairman and CEO of HiPhi Automobile, accompanied by Executive Director Zhang Yi, CTO Mark Stanton, Co-CTO Chen Jun, and CFO Deng Mingyang.

Minister Bandar Al-Khulaifi remarked, "A first-class team and outstanding works have made Human Horizons HiPhi Automobile a remarkable company." Ding Lei stated that starting from Europe and the Middle East, HiPhi Automobile aims to continue providing environmentally friendly, safe, and efficient smart electric vehicles to more users worldwide, offering a delightful future travel experience.

HiPhi Automobile, a luxury intelligent pure electric brand under Human Horizons established in 2017, focuses on the strategic layout of smart automobiles, smart transportation, and smart cities. It is an innovative mobility technology company dedicated to the future intelligent transportation industry. In 2021 and 2022, HiPhi Automobile sold 4,237 and 4,349 vehicles, respectively.

While HiPhi Automobile has not released its sales data for the entire year of 2023, available figures show that from September to December 2023, the company sold 1,735, 1,834, 696, and 564 vehicles, respectively. In January and February 2024, sales were merely 232 and 40 vehicles.

On July 1, 2024, Human Horizons filed for pre-bankruptcy reorganization with the court, citing its inability to repay maturing debts and the potential for reorganization to facilitate fund infusion, resume production, and safeguard creditors' rights. In early August 2024, it was reported that HiPhi Automobile's parent company, Human Horizons, had entered the pre-bankruptcy reorganization stage.

On August 19, 2024, HiPhi Automobile issued an after-sales service announcement stating that from that date until the completion of pre-reorganization and reorganization, it authorized Shanghai Yueda Zhixing Automobile Service Co., Ltd., a wholly-owned subsidiary of Jiangsu Yueda Automobile Group, to procure HiPhi Automobile parts to support after-sales services.

On September 11, 2024, Human Horizons issued an announcement clarifying that the recruitment process aimed to leverage strategic investors' industry and financial advantages to support the formulation of a (pre-)reorganization plan, coordinate and promote pre-reorganization or reorganization efforts, and resolve the debt crisis.

A former salesperson at HiPhi Automobile told Five-Star Car Review that the brand's initial high pricing, with a starting price of RMB 600,000, lacked competitive advantage. "HiPhi's pedestrian interaction and other features are relatively advanced, but its marketing efforts fell short."

This individual also emphasized that to date, no failed automobile brand has successfully revived. In the future, HiPhi Automobile will continue to struggle for a place in the domestic market and can only hope to find a glimmer of hope through overseas expansion.