Jiangsu HiPhi Automobile Co., Ltd., the newly established entity aiming to revive the premium Chinese electric vehicle (EV) brand HiPhi, is confronting serious legal and operational challenges just weeks after its launch.

Founder barred from high-value spending

Recent court documents reveal that Ding Lei, founder and legal representative of HiPhi (Guangzhou) Automotive Sales and Service Co., Ltd., has been barred from high-value consumption due to unresolved labour dispute obligations. The Panyu District People’s Court in Guangzhou was restricted after the company failed to comply with a court ruling. Over 388,000 yuan (approx. 53,850 USD) has been imposed against the company.

The court order prohibits Ding from engaging in non-essential luxury spending such as air travel, upscale hotels, and private schooling until the judgment is fulfilled. Ding Lei currently faces 30 such spending restrictions, highlighting ongoing financial instability at the leadership level.

HiPhi (Guangzhou) – HiPhi’s Guangzhou unit, founded in January 2021 with a registered capital of 20 million yuan (approx. 2.78 million USD), has also been involved in various legal disputes, including property lease and service contract issues.

New ownership and capital infusion signal a possible revival

On May 22, 2025, Jiangsu HiPhi Automobile Co., Ltd. was officially established with a registered capital of approximately 1 billion yuan (143 million USD). The company is jointly owned by Lebanon-based EV Electra Ltd. (69.8%) and Human Horizons (Jiangsu) Technology Co., Ltd. (30.2%), signalling a potential resurgence after HiPhi’s operations ceased last year amid financial troubles.

EV Electra, led by CEO Jihad Mohammad, has committed to injecting 100 million USD into HiPhi by the end of 2025. Under this new leadership, Ding Lei no longer heads the company. EV Electra’s website features HiPhi’s previous models—the HiPhi X,  Y, and Z—indicating ambitions to revive the brand. However, it remains uncertain whether HiPhi will maintain its premium segment focus (vehicles priced between 70,000 and 110,000 USD) or shift toward more affordable mid-range EVs (28,000–42,000 USD) to capture a broader market share.

Government support and production capacity

HiPhi’s revival relies heavily on its Yancheng manufacturing plant, which recently passed an environmental review and maintains a 150,000-unit annual capacity. The factory will continue producing the HiPhi Z and Y models, with ongoing upgrades targeting EV production while separating combustion engine lines.

The local government has played a pivotal role in the company’s restructuring. After Human Horizons filed for bankruptcy reorganisation in August 2023, reporting 5.98 billion yuan (830 million USD) in assets against 15.78 billion yuan (2.19 billion USD) in liabilities, courts approved a consolidation involving 52 affiliated companies. Yueda Auto Group and Yancheng Oriental Investment Development Group invested 300 million yuan (41 million USD) to support operations as “common benefit creditors.”

Brand legacy and market challenges

HiPhi earned recognition for its innovative engineering, particularly the H-SOA (HiPhi Service-Oriented Architecture), which allows dynamic vehicle function reconfiguration, and bold design features like wing-style doors on the HiPhi X. Despite this, sales have lagged. The more affordable HiPhi Y, priced at 339,000 yuan (47,000 USD), briefly exceeded 1,000 units monthly after launch in mid-2023 before falling to just over 500 by November.

Market analysts suggest that HiPhi needs to pivot toward mid-range EVs with competitive features like 800V fast charging to regain momentum. Yet EV Electra publicly emphasises a continued focus on luxury, promising to “bring innovation, performance, and luxury to new levels.” Whether this approach matches market realities is uncertain.

Structural weaknesses and uncertain future

HiPhi’s planned Qingdao headquarters project, backed by local government investment of 3.88 billion yuan (539 million USD), is currently stalled. Similarly, a 7.7 billion USD joint venture deal with Saudi Arabia’s Ministry of Investment has faltered due to unmet funding conditions.

Critically, HiPhi lacks an independent manufacturing license and continues to rely on Dongfeng Yueda Kia for production approvals—a vulnerability that may limit its operational independence.

Despite debt restructuring and fresh capital, the brand faces significant challenges in rebuilding consumer trust and securing a sustainable foothold in China’s fiercely competitive EV market.

Outlook: revival or repetition of past struggles?

HiPhi’s reboot offers a fresh start, backed by substantial investment, debt relief, and an operational factory. Its unique engineering and design could appeal to domestic and export markets alike. However, EV Electra’s limited mass production experience, HiPhi’s damaged reputation, and intense competition pose serious obstacles.

With Ding Lei still under multiple court-imposed restrictions, questions remain about leadership stability. The coming months will be critical in determining whether HiPhi’s second act will be a genuine revival or a continuation of past difficulties.