Chinese NEV Startup WM Motor to Restart Production Next Month

(Digital Phablet) July 17 — A struggling Chinese electric vehicle startup, WM Motor, is reportedly set to resume production next month, supported by its investor Xiangfei Auto.

According to Chinese tech media outlet MingJin Pro on July 14, WM Motor and Xiangfei Auto are moving forward with the restart of mass production for the EX5 and E5 electric vehicle models at WM Motor’s facility in Wenzhou, Zhejiang province. This information was obtained from an internal white paper shared with suppliers, which was provided by a former WM Motor employee.

Established in 2015, WM Motor was among China’s earliest NEV startups to reach mass production. However, it encountered a liquidity crisis in the second half of 2022 and had to halt operations. In January, the company announced that a court in Shanghai approved its pre-restructuring plan.

Xiangfei Auto has now taken control of WM Motor and its three affiliated companies, as confirmed by a court-approved reorganization plan on April 3. The new iteration of WM Motor aims to produce 10,000 vehicles this year, with hopes to surpass that number and reach 20,000 units, according to the plan. The company also plans to establish a knock-down plant in Thailand to tap into Southeast Asian and Middle Eastern markets, with a target of reaching 100,000 units of production next year.

Starting in 2027, WM Motor’s sales targets are projected to range between 250,000 and 400,000 vehicles annually. The company intends to ramp up production of models featuring advanced driver assistance systems, leverage artificial intelligence to strengthen its supply chain, and lay the groundwork for an IPO. By 2030, its goal is to produce one million vehicles annually and generate revenues of approximately CNY120 billion (around USD16.7 billion).

Regarding product lineup, WM Motor plans to introduce more than 10 new EV models over the next five years, including pure electric and extended-range electric vehicles, spanning sedans, SUVs, and multi-purpose vehicles.

While the plan appears comprehensive, industry analysts believe WM Motor still faces significant hurdles, especially given the intensifying competition within China’s NEV market. The company’s reputation was impacted negatively, and it will likely need time to rebuild its market presence.

The white paper highlights that the municipal government of Wenzhou, along with the city’s Marine Economic Development Demonstration Zone, has formed a dedicated task force to assist WM Motor in restarting production post-reorganization, including coordinating with local suppliers.

Additionally, Xiangfei Auto is actively engaging with local financial institutions to arrange for funding, using its high-quality assets as collateral to provide assurance for equipment upgrades, supply chain rebuilding, and business expansion.

Founded in September 2023, Xiangfei Auto has a registered capital of CNY100 million (approximately USD13.9 million). Its legal director, Huang Jing, is the actual controller of Baoneng Motor Group, the automotive division of the Chinese conglomerate Baoneng Investment Group, with associated parties holding stakes in Baoneng’s affiliated firms.

Baoneng Motor has faced enforcement actions for dishonesty, including fines exceeding CNY12 billion. At the start of last year, WM Motor carried debts of about CNY20.4 billion (around USD2.8 billion) and assets valued at only CNY4 billion (roughly USD557 million). According to Shanghai court records, the company’s valid claims totaled over CNY14.8 billion, with creditor rights worth about CNY11.2 billion currently deferred.