The ultra-competitive panorama that’s the Chinese language automotive market has already seen many start-up gamers fall by the wayside, and the pure cull isn’t removed from over. One other participant that could be heading out the door within the close to future is Hycan, with stories popping out from China indicating that issues aren’t trying good for the carmaker, to place it mildly.
If the identify sounds considerably acquainted, that’s as a result of it surfaced on the native radar a few months again. In September, we reported that the Guangzhou-based new power automobile model had revealed plans to enter the Malaysian market subsequent yr, doing so by an area distributor known as Idea Fields.
That’s trying like a really lengthy shot now, if what CarNewsChina stories is correct. It’s mentioned that Hycan has been affected by severe money stream points on account of sluggish gross sales, and its absence from the continuing Guangzhou Auto Present is a part of the cracks that may be seen on the floor.
Beneath that could be a scenario that’s far more dire. Information shops have reported that the corporate has laid off all its workers in its Shanghai department and defaulted on compensation for laid-off workers. This comes after it was reported that each one gross sales channels in Shanghai had been suspended in June, with nobody answering cellphone calls on the model’s expertise centre or its branches at that time.
In accordance with the CNC report, layoffs started as early as April this yr, with stories indicating that fifty% of workers had been laid off then. By July, there have been nonetheless round 600 workers left, however the manufacturing unit was already shut, and manufacturing and gross sales plans had been suspended.
Laid-off workers declare that solely about 50 workers are presently left on the Guangzhou headquarters to keep up the corporate’s fundamental operations, and the present workers had been transferring to Nansha district to work. The report provides that it isn’t solely workers that Hycan owes cash to, but in addition suppliers. Up to now this yr, greater than 100 instances have been filed wherein Hycan is a defendant.
The model was established by GAC Group (GAC) and Nio in 2018 as GAC-Nio New Vitality Know-how, with each GAC Group and GAC New Vitality (now GAC Aion), taking a share within the firm. Underneath the partnership, GAC was answerable for analysis and growth in addition to automobile manufacturing, whereas Nio would supply the expertise and EV infrastructure.
Nio’s share progressively dwindled from 2020 as the corporate suffered extreme monetary pressures. In 2021, Zhujiang Funding Administration Guangdong Pearl River Funding) took over as the biggest shareholder, with Nio’s share cutting down to simply 4.5%. The next yr, Nio withdrew from the JV fully.
Given all this, it’s trying unlikely that Hycan will make its means right here as supposed. And what’s going to the Malaysian market be lacking out on? Properly, three full-electric fashions had been slated for Malaysia, these being the Z03 SUV, the A06/A06 Plus sedans and the V09 MPV, particulars of which you’ll be able to examine right here.
GALLERY: Hycan Z03 SUV
GALLERY: Hycan V09 MPV
GALLERY: Hycan A06 sedan
GALLERY: Hycan A06 Plus sedan
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