Aiways needs fresh capital and wants to become an export brand

The struggling electric car manufacturer Aiways wants to become a pure export brand. However, the company needs more capital in order to resume production of its two models. If this succeeds, an e-car for around 25,000 euros could also follow.

Aiways has been quiet in recent months following reports of financial difficulties and the production stop at its own plant in China. A company spokesperson has now commented on the company’s future prospects to the Reuters news agency. “We need a major investment and are confident that we can make it,” Bernd Abel, Aiways’ overseas communications director, is quoted as saying.

Abel did not specify how high this “major investment” would have to be, but he did say what strategy Aiways intends to use to achieve the turnaround: the company wants to concentrate on becoming a pure export brand – initially in Europe. “We will not sell in China because the price war in China is unbelievable. You can only make losses in China,” said Abel.

If fresh capital can be used to restart production of the existing U5 and U6 models at the Shangrao plant, which was discontinued last summer, Aiways hopes to export between 15,000 and 25,000 cars this year and reach “six-digit figures” within a few years. Aiways is also working on a more affordable electric car that could start at around 25,000 euros.

Last June, Chinese media reported that vehicle production at the Aiways plant in Shangrao had already been halted in February 2023, as neither suppliers nor employees could continue to be paid. The background to this was probably also the entry of a new investor, which took longer than planned. After two changes of CEO in 2022, another followed in August 2023. The appointment of Hugo Zhu already indicated that Aiways wanted to focus on business outside of China in the future – the old investors had previously called for the China business to get up and running before turning to other markets. Investors in the electric vehicle manufacturer, which was founded in 2017, include technology giant Tencent, ride-hailing group DiDi and battery manufacturer CATL.

A number of electric car start-ups have recently come under pressure in China and some have had to cease operations – such as WM Motors and Human Horizons with its HiPhi brand. Unlike these brands, which are primarily focussed on China, Aiways had already sold its cars in 16 European countries before the production stop, albeit in rather small numbers. If Aiways were to resume production with an investment, success is not guaranteed: Competitors’ vehicles have developed enormously.

reuters.com