Chinese startup Human Horizons, the company behind the HiPhi performance EV brand, has filed for pre-bankruptcy restructuring, according to a Bloomberg report on Friday.
The filing, made in a court in Yancheng—the eastern Chinese city where its factory is located—states that the company’s assets could no longer cover its debts as of April. This move follows unsuccessful attempts by Human Horizons to secure additional funding, as reported by Chinese media. The court has ruled that Human Horizons meets the criteria for restructuring and will appoint an administrator to manage the process for six months, with a potential three-month extension.
Founded in 2019, Human Horizons launched the HiPhi X electric SUV and HiPhi Z electric hatchback, with plans for a third model, the HiPhi A, announced in 2023. The HiPhi A was intended to be a limited-edition, high-performance version of the HiPhi Z, boasting 1,287 hp and developed in collaboration with Apollo, the company behind the Intensa Emozione and Project Evo hypercars.
Although Human Horizons does not operate in the U.S., it began selling its HiPhi X and HiPhi Z models in Germany and Norway last year. However, the company delivered fewer than 8,000 units globally in 2023, leading to an inability to pay suppliers. Production was halted in February, and the company has since been closing showrooms.
The competitive landscape for EV startups, particularly in China, has been brutal. With more than 100 brands vying for a shrinking market amid a slowing economy, Human Horizons’ struggles highlight the challenges faced by many in the industry. Despite this, EVs and plug-in hybrids have recently made up the majority of vehicle sales in China for the first time, even as the country ended a national EV subsidy in 2022.