WM Motor, used to be one of China’s most promising electric vehicle startups, has filed for bankruptcy and a Shanghai court is handling the case, according to a notice posted on the National Enterprise Bankruptcy Information Disclosure Platform.
The company said on Thursday that the court has accepted its pre-restructuring application.
WM Motor was one of the first electric car startups in China to achieve mass production and deliveries, and ranked second in the country behind Nio in 2019, with shipments of 16,900.
Last year, the firm delivered fewer than 30,000 vehicles, according to data from the China Passenger Car Association. Since the second half of 2022 it has cut salaries, shut assembly lines, gone into rent arrears on its headquarter’s building, and seen many dealers walk away.