FleetCheck is urging caution among fleet managers buying vehicles from new Chinese manufacturers entering the UK market, following the recent bankruptcy of HiPhi.
The parent company of the HiPhi electric vehicle (EV) brand, Human Horizons, filed for bankruptcy in China, raising concerns over the viability of some emerging EV brands.
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The bankruptcy filing, made official by Yancheng’s Economic and Technological Development Zone court in early August, signals the end of the seven-year-old company’s efforts to secure investment to restart production of its HiPhi X, Z, and Y models. Production of the luxury EVs had been on hold since February 2024 as part of a reorganisation strategy.
Peter Golding, managing director at fleet software specialist FleetCheck, highlighted that HiPhi had been preparing to enter the European market, with official approval of its models already underway. He warned that the company’s collapse could be a precursor to further failures in the sector.
Golding referenced a report by the Financial Times, which predicted that the number of Chinese EV manufacturers could drop from around 50 to 12 over the next decade. “HiPhi is probably the first of several to go bust,” he noted.
He also pointed out that the issue extends beyond China, citing the recent bankruptcy of US-based EV maker Fisker. “Both HiPhi and Fisker appeared to have convincing models and solid financing, yet now Fisker is selling off its remaining stock at an 80% discount with limited parts availability,” Golding explained.
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By GlobalDataFor fleets, this creates a challenge in assessing the credibility of new entrants. “Fleets don’t want to end up with vehicles from a manufacturer that fails,” Golding warned. “They need to tread carefully.”
Golding added that there is a risk of Chinese manufacturers flooding the European market with excess stock following a drop in domestic demand. “Overproduction in China may lead to tempting offers, but these manufacturers are the ones most likely to fail in the future,” he cautioned.
His advice to fleets is to focus on Chinese manufacturers establishing a strong presence in Europe, including franchise dealer networks, parts distribution hubs, and ideally, local manufacturing capacity. “These manufacturers may not offer the lowest prices but are committed to long-term partnerships with fleets,” Golding concluded.
