By Li Panpan

(JW Insights) Oct 10 -- Chinese EV startup WM Motor has filed for bankruptcy in Shanghai, according to the National Enterprise Bankruptcy Information disclosure platform website.

Hong Kong-listed Apollo Future Mobility announced on September 8 that its acquisition of WM Motor would not proceed because of turbulent global market conditions, continued uncertainty in the financial market atmosphere, and short-term economic recovery.

At present, BYD and Geely Automobile are gradually becoming China's leading automobile brands. WM Motor's bankruptcy filing reflects the boom and bust cycle of small electric vehicle manufacturers in market competition.

Founded by Shen Hui, the former CEO of Geely Holding Group, in May 2012, WM Motor achieved an annual sales of 16,876 vehicles in 2019, ranking second among startups in the Chinese automotive industry. It has also attracted investments from top companies, including Baidu and SAIC Motor, with a total financing amount exceeding RMB35 billion (approximately $4.8 billion), reported Pandaily on October 10.

However, in 2021, WM Motor frequently experienced spontaneous combustion incidents, mainly concentrated on the EX5 and EX6 models. Subsequently, WM Motor conducted a vehicle recall, but the solution was surprisingly to "lock" the battery capacity of the vehicles, greatly reducing their driving range. This has caused dissatisfaction among car owners, and they have jointly sent legal letters to WM Motor for rights protection, according to the Pandaily report.

WM Motor sold only 35,647 electric sports utility vehicles in 2021 and only about 34,700 last year. In the first eight months of this year, the company sold 1,387 cars.