(Yicai) Feb. 23 -- Struggling Chinese electric vehicle maker HiPhi has three months to pull itself back from the brink, founder Ding Lei has said.

The company will form a special working group to try and save HiPhi, but it may shut down if these efforts fail, Ding said at the firm’s Shanghai headquarters yesterday, adding that the pressure is considerable on all sides.

Media reports at the weekend said the luxury electric car company had halted production for up to six months and there were also reports that it had been unable to pay staff wages in January.

China’s new energy vehicle industry has developed rapidly but that has brought intense competition. Fifteen NEV makers have announced either bankruptcy or a business crisis, including WM Motor, Enovate, Singulato, and Aiways.

HiPhi’s shutdown has attracted a lot of attention, and many firms have shown an interest in acquiring or investing in it, Ding said.

HiPhi started making big changes in its operations on Feb. 19 and is now trying to find solutions to save itself, the firm said yesterday. HiPhi will continue offering user services and after-sales vehicle maintenance, and the firm said these are among its top priorities as it tries to find a way out of the situation.

HiPhi’s predicament has been caused by long-term poor sales. It sold only 4,237 vehicles in 2021 and 4,349 in 2022. Sales rose last year, but only to 8,681.

The company will tie up with Yancheng Yueda Zhi Chuang New Energy Cars to guarantee after-sales services, it said.

Editor: Tom Litting