This Chinese car manufacturer seeks salvation in Europe

The fierce price war on electric cars in China is having major consequences. Not only have the margins of car manufacturers shrunk, but there are small Chinese electric vehicle start-ups in dire straits. Aiways, WM Motors and Human Horizons are some of them.

Thanks to new funding, Aiways will try to revive itself by moving its headquarters to Europe. Sales, marketing and finance will be managed from here; production, procurement and research and development, however, will remain in China.

A lifeline

Finding itself in financial difficulties, last summer Aiways stopped production at its Shangra plant, where 300,000 electric vehicles a year were assembled.

Now, after being listed on the stock exchange through a merger with the US takeover company Hudson Acquistion, it is looking to restart. The SPAC merger is worth around USD 400 million and is expected to be completed by the end of the year.

"The new entity will be strategically positioned to capitalise on our vision and resources in the European electric vehicle market," said Alexander Klose, managing director of Aiways Europe.

CATL is also in it

Founded in 2017, Aiways has technology giant Tencent, ride-hailing group DiDi and battery manufacturer CATL among its investors, who will remain shareholders.

Aiways U5

Aiways U6

The all-electric U5 and U6 models have been sold in 16 European markets, now it will have to be seen if anything new comes along.

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