While many electric vehicle (EV) manufacturers are celebrating the start of the Chinese Lunar New Year, Human Horizons’ premium EV brand, HiPhi, is facing difficulties as it announces a six-month production halt, marking a further setback in its operations.
The Shanghai-based company made this decision during an internal meeting on February 18, with the halt taking immediate effect, as reported by local media outlet Jiemian. According to the report, employee salaries up to February 18 will be paid as usual, with salaries typically paid on the 15th day of each month.
Employees who remain with HiPhi until March 15 will receive only basic salaries, and after this date, only Shanghai-based employees will continue to receive basic salaries, the report added.
This move follows previous cost-saving measures announced by HiPhi, including the postponement of January salaries, the cancellation of year-end awards, and a company-wide pay cut. January salaries are now expected to be paid at the end of February, according to Jiemian.
Founded in 2017, HiPhi targets the premium EV market with its models priced between RMB 500,000 ($69,500) and RMB 800,000.
The company unveiled its first model, the HiPhi X, in October 2020, with deliveries starting in May 2021 at a starting price of RMB 570,000.
See also: Human Horizons Launches Affordable HiPhi Y Electric SUV in China and Plans European Expansion
In August 2022, HiPhi launched its second model, the HiPhi Z, priced from RMB 510,000.
HiPhi entered the mainstream premium EV market on July 15, 2023, with the launch of its most affordable model to date, the HiPhi Y, starting at RMB 339,000.
Rumors of layoffs began circulating on social media after the National Day holiday in early October 2023. While HiPhi initially denied these rumors, reports later indicated that some executives had received verbal notifications of layoffs across every department. The extent of these layoffs was not widely known within the company at the time, with some lower-level employees reportedly unaware of the situation.
