HiPhi began production halt on February 18 -- the first working day after the Chinese New Year holiday -- sparking fears about its fate.

(Image credit: CnEVPost)

HiPhi is reportedly approaching an automotive giant about a takeover that, if successful, may save the Chinese premium electric vehicle (EV) maker, which is on the verge of collapse.

HiPhi is in contact with Changan Automobile about a takeover, local media outlet Jiemian said in a report today, citing people familiar with the matter.

The brief report did not provide much more.

Separately, D1EV cited a HiPhi source as saying that the company's founder Ding Lei did visit Changan and that the two sides had friendly communication.

The source did not disclose the specifics of the talk or its progress, D1EV noted.

Another local media outlet, Yicai, later also reported on the meeting, and cited Changan chairman Zhu Huarong's response as saying that the two companies were in talks, but were far from a done deal.

Ding met with Zhu in Chongqing, where Changan is headquartered, on February 27 for talks, and HiPhi brought the company's vehicles for Changan's team to experience, according to Yicai.

(HiPhi founder Ding Lei (first from left) met with Changan chairman Zhu Huarong (second from left) on February 27 in Chongqing. Image credit: Yicai)

HiPhi was founded in 2017 and is targeting the premium EV market of RMB 500,000 ($69,450) to RMB 800,000.

The company unveiled its first model, the HiPhi X, in October 2020, which began deliveries in May 2021 and is currently priced at a starting price of RMB 570,000 yuan.

In August 2022, HiPhi launched its second model, the HiPhi Z, which is currently priced at a starting price of RMB 510,000 yuan.

On July 15, 2023, HiPhi launched its least expensive model to date, the HiPhi Y, in an attempt to enter the mainstream premium EV market. The model starts at RMB 339,000 and deliveries begin on July 29, 2023.

Instead of celebrating the start of work like other car companies on February 18 -- the first working day after the Chinese New Year holiday -- HiPhi announced a six-month production halt with immediate effect.

HiPhi employees would be paid as usual until February 18, and after March 15 only Shanghai employees will receive their basic salaries, according to a Jiemian report earlier this month.

Sina Tech reported on February 22 that Ding made his first appearance at the company's Shanghai headquarters since it announced the production halt.

In an internal meeting with employees, Ding apologized to them, saying he was using old-fashioned business strategies and was no match for his counterparts from Internet companies, according to the report.

Ding said that HiPhi's window for a turnaround is only three months at most, and that he will actively work on it, according to the report.

A number of companies have expressed interest in HiPhi, including acquisitions and investments, according to Ding.

($1 = RMB 7.1990)

HiPhi founder apologizes to employees, says firm has only 3-month window left