(Yicai) Aug. 19 -- HiPhi, a struggling Chinese electric carmaker that suspended manufacturing in February, is restarting after-sales services to honor its post-market guarantees to existing car owners, the company, which has entered the pre-restructuring process, said today.

HiPhi has enlisted a unit of Jiangsu Yueda Automobile Group, which is the Chinese partner of South Korean auto manufacturer Kia and in which its parent firm Human Horizons holds a 15 percent stake, to purchase spare parts as part of the company's after-sales services from now until when the re-organization is completed, the firm said today.  Yancheng-based Yueda Auto also used to make cars for HiPhi.

Shanghai Yueda Zhixing Automotive Service has started to procure vehicle parts and HiPhi’s after-sales service outlets now have the supplies they need, it said. Yueda Zhixing is also preparing to increase services in more than 20 cities, it added.

Founded in 2017, Human Horizons unveiled its first model HiPhi X in 2020. Launches of two other models, HiPhi Z and Y, followed until the startup was overshadowed by rivals in China's crowded NEV market.

Human Horizons said in February that HiPhi would suspend production for at least six months due to its distressed capital chain. Founder Ding Lei said at the time that the startup had three months to save itself and that many companies have shown interest in acquiring or investing in it.

Since then, a number of car firms, including Changan Automobile and Lifan Technology, reportedly reached out but without any outcome. In July, Shanghai-based Human Horizons applied to a court in Yancheng to start the pre-restructuring procedure and its application was approved.

HiPhi focuses on high-end electric models with a price tag of up to CNY800,000 (USD112,010). Last year, the firm sold 8,681 units, in 2022 it shifted 4,349 autos and in 2021 4,237.

Editors: Dou Shicong, Kim Taylor​