Chinese EV maker Human Horizons suspends manufacture of luxury HiPhi brand for 6 months as market competition intensifies

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Two sources with knowledge of the electric car maker’s operations said the company was not able to pay its employees in January

Shanghai-based carmaker failed to turn its business around amid a slowdown in the Chinese EV market that may force smaller carmakers to fold

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‘HiPhi’s crisis exacerbates the bearish sentiment about Chinese EV companies’ performance,’ said Chen Jinzhu of Shanghai Mingliang Auto Service. Photo: SCMP Pictures

Daniel Renin Shanghai

Published: 8:38pm, 19 Feb 2024Updated: 8:59pm, 19 Feb 2024

Human Horizons, a Chinese maker of luxury electric vehicles, has become the latest victim of the cutthroat market, halting production of its cars amid a capital crunch.

The Shanghai-based company told its employees on Sunday that it was implementing a six-month suspension of its luxury HiPhi brand, effective immediately, according to local financial media outlet Jiemian.

Human Horizons declined to comment when contacted by the Post on Monday.

Two sources with knowledge of the electric car maker’s operations said the company was not able to pay its employees their salaries in January.

The decision to stop assembling its expensive cars priced above US$80,000 came after Human Horizons failed to turn its business around amid a slowdown in the Chinese EV market that may force smaller carmakers to fold.

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Electric car designed by Swiss students sets new world record for acceleration

“HiPhi’s crisis exacerbates the bearish sentiment about Chinese EV companies’ performance,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “More small players will have to close down their businesses as competition escalates.”