The HiPhi factory will be inactive for a total of six months, according to an internal memo received by the employees. This information has been circulating in the Chinese media recently. The facility, located in Yancheng, north of Shanghai, is off-limits to anyone during this period. The employees will not receive their January payment until the end of February, and the payment dates for salaries from February 1 to February 18 are still undecided. From February 18 to March 18, those who choose to stay with the company will receive 70 percent of their salaries. After March 18, only a minimum wage salary will be provided to those who remain employed.
The employees have also been informed that they are not allowed to pay social security while working, and they must resign before February 25 and take care of the payment themselves. Human Horizons, the company that owns the HiPhi premium brand, has also decided to cancel all year-end bonuses.
Previously known as Dongfeng Yueda Kia’s First Plant, the production center that is currently shutting down ceased operations in June 2019. It used to manufacture Kia Sportage, Soul, and Cerato models. In November 2021, the HiPhi X became the first vehicle to roll off the production line, even though the company was established four years earlier.
With a production capacity of 150,000 vehicles per year, the plant produces three models: the HiPhi X, Y, and Z. The A model, which focuses on performance, was scheduled to be released soon but is facing production issues.
While sales figures have been increasing over the past three years, the growth has been relatively slow. In 2021, 4,237 electric cars were sold, followed by 4,349 in 2022 and 4,829 in 2023. The most popular and affordable model is the entry-level SUV HiPhi Y, starting at 339,000 yuan ($47,094).
On the other hand, the HiPhi X SUV and Z sedan have higher starting prices, exceeding 600,000 yuan ($83,353 or 77,328 euros). Although these models are sold in Europe, they are considerably more expensive compared to other options available in the market. For example, the X starts at 109,000 euros in Germany, while the Z can be ordered for 107,000 euros. This pricing does not make them competitive in the European market, as customers can find models with over 600 horsepower for less.
According to Car News China, HiPhi recently closed its stores in Chengdu and Guangzhou, indicating the struggles faced by small EV carmakers in China and the overall slowdown of the EV market.
According to the Source autoevolution.com