Information appeared in several Chinese specialized media that the car manufacturer Avatr plans to buy the electric car development startup HiPhi and save it from bankruptcy. After this information was made public, Avatr quickly began to deny the news of a possible partnership and acquisition.
Unlike many other electric car brands that have appeared in China in recent years, HiPhi does not belong to old and well-known car manufacturers. Instead, its parent company Human Horizons was built from scratch by founder Ding Lay in 2017 before HiPhi launched in 2019. The brand has already released three models: Z, X and Y.
However, hard times have come for the company. In February, the company announced the suspension of production for six months. At the time, Lay said the firm would only have three months to turn around.
A new report emerged in China on Monday that Avatr Technology, which is owned by Changan and battery maker CATL, will acquire a 51% stake in HiPhi. While Avatr has dismissed the news, it's not completely unfounded. Lei did visit the Changan plant in February and met with the company's chairman, Zhu Huarong. However, it remains unclear whether their talks were about a potential acquisition.
Despite the denials, the two companies may still have discussions behind the scenes. As noted by CarNewsChinaAvatr technically denies that it bought HiPhi, not that it is in talks with HiPhi about such an acquisition.
If Avatr were to acquire a majority stake in HiPhi, it would be interesting to see what they decide to do with the brand. He can simply provide the company with the funds necessary to resume production, or start using some of HiPhi's technologies and systems in his own cars.