Chinese EV startup Human Horizons files for bankruptcy protection

Chinese startup Human Horizons, the company behind the high-performance EV brand HiPhi, has filed for bankruptcy restructuring. According to court documents dated August 9, Human Horizons filed an application for restructuring with a court in Yancheng, the eastern Chinese city where its factory is located, stating that its assets could no longer cover its debts as of April. This news comes after failed attempts by Human Horizons to secure additional funding.

The court reportedly ruled that Human Horizons met the conditions for restructuring and will appoint an administrator to oversee the process for six months, with a possible extension of three months. Founded in 2019, Human Horizons successfully launched the HiPhi X electric SUV and the HiPhi Z electric hatchback, with plans announced in 2023 for a third model called HiPhi A. The HiPhi A was to be a limited-edition performance flagship derivative of the HiPhi Z, featuring 1,287 hp and development input from Apollo, the company behind the Intensa Emozione and Project Evo gas-powered hypercars.

Human Horizons does not operate in the U.S., but began sales in Germany and Norway last year with its HiPhi X and HiPhi Z models. It delivered fewer than 8,000 of these niche vehicles worldwide in 2023, which has left it unable to pay suppliers. The company suspended production in February and has been closing showrooms. In recent years, numerous EV startups have come and gone, but Bloomberg notes that the Chinese automotive market has become particularly cutthroat, with over 100 brands competing for a shrinking number of sales as the economy slows. In 2022, China also eliminated a national EV subsidy that had helped drive sales, although EVs and plug-in hybrids together accounted for the majority of sales in China for the first time earlier this year.