Reports emerged on October 30 that Yuanhang, an EV brand owned by Dayun Group, is in trouble. According to the report, the company is suffering from employee loss and is also delaying salary payments.
According to an employee in the R&D Department of Yuanhang, in the chassis section, staff are leaving very fast; there are now only a dozen employees left. Another employee reported that his department had been forced to take a week of unpaid leave.
Furthermore, insiders are reporting that Yuanhang is experiencing cash flow problems and is looking for financing from the local government and other potential investors.
Yuanhang Automobile responded to the story, saying that the company is undergoing strategic adjustment and reorganization. Currently, it is in a transitional phase and will resume normal operations once the reorganization is complete.
The brand further emphasized that, due to being part of the Dayun Group, it would not go bankrupt easily and that currently, senior executives and middle-level employees are all working normally.
The Dayun group dates back to 1987 and has, until recently, mainly been involved in producing commercial vehicles and motorcycles. It should be noted that Yuanhang is not the only EV brand produced by the company, which also sells cheaper EV cars under the Dayun brand.
Yuanhang is a relatively new brand established in August 2022. It already has four models on sale: the Y6 and Y7 sedans and the H8 and H9 SUVs. Sales during the first nine months of 2024 only reached 5,584 cars. Prices for the models range from approximately 300,000 to 500,000 yuan (42,150 β 70,200 USD).
The models are made with components from Tier 1 suppliers, including Β Huawei, Alibaba, and Bosch.
The number of Yuanhang stores has been shrinking. At the beginning of the year, there were five sales outlets in Beijing, which have since shrunk to three and a service center.
Earlier this year, Human Horizons, the producer of the HiPhi brand, filed for bankruptcy.
Sources: Fast Technology, Times Weekly
