On September 6, WM Motor announced on its official Weibo account the publication of a statement titled “Explanation on the Restructuring of ‘New WM Motor’.”
According to WM Motor’s White Paper for Suppliers, new shareholder Shenzhen Xiangfei Automobile Sales Co., Ltd. (“Xiangfei”) has taken over four companies: WM Motor Technology Group Co., Ltd., WM Smart Mobility Technology (Shanghai) Co., Ltd., Suzhou WM Smart Mobility Technology Co., Ltd., and WM Motor Manufacturing Wenzhou Co., Ltd. Production of the WM EX5 and E5 models is being restarted at the Wenzhou plant, signaling WM Motor’s “revival.”
New Shareholder Background
Shenzhen Xiangfei Automobile Sales Co., Ltd. was established in September 2023 with registered capital of 100 million RMB and paid-in capital of 42 million RMB. Its legal representative is Huang Jing. The company is jointly owned by Shenzhen Zhuokai Enterprise Management Co., Ltd. (81.82% stake) and Shenzhen Fengyu Enterprise Management Co., Ltd. (18.18% stake).
Debt Repayment Plan
The white paper outlines a plan to settle supplier debts. Creditors owed 150,000 RMB or less will receive full cash repayment within six months after the court approves the restructuring plan. For debts above 150,000 RMB, the first 150,000 RMB will be repaid in cash, and the excess will be settled proportionally through trust beneficiary shares.
Revival Roadmap
WM Motor’s comeback is divided into three stages:
Revival Stage (2025–2026): Restart EX5 and E5 production in September 2025 with an annual capacity of 10,000 units, targeting sales of 20,000 units. Establish a KD plant in Thailand to expand into Southeast Asia and the Middle East. Production capacity expected to reach 100,000 units in 2026.
Development Stage (2027–2028): Annual sales projected to rise to 250,000–400,000 units, including mass production of advanced driver-assistance models, with IPO preparations underway.
Breakthrough Stage (2029–2030): Challenge production of 1 million units by 2030, aiming for revenue of 120 billion RMB, while building a smart mobility ecosystem and becoming a new industry benchmark.
From Rise to Collapse
As one of China’s early EV startups and once among the “Four Little Dragons” of new carmakers, WM Motor initially held strong advantages, including rare EV manufacturing licenses and significant fundraising, backed by investors such as SAIC, Tencent, Baidu, Sequoia China, and Hongta Group. Despite this, WM fell into a severe cash crunch and eventually filed for bankruptcy restructuring.
From 2023, both WM’s factories halted production, and its subsidiaries—including WM Motor Manufacturing Wenzhou and Hubei Xinghui New Energy Smart Auto—filed for bankruptcy restructuring. In October 2023, WM Motor Technology Group Co., Ltd. filed for restructuring, and in December 2024, the Shanghai Third Intermediate People’s Court ruled to merge its subsidiaries into a consolidated restructuring case. In January 2025, the same court accepted WM Motor’s pre-restructuring application, and creditor meetings began online. Reports suggested that WM would restart operations in 2025 with a refreshed brand and marketing network.
Product Plans
Currently, WM’s product lineup includes the EX5, W6, E.5, EX6, and M7 (unlaunched). According to the white paper, over the next five years WM plans to launch more than 10 new products across multiple categories, from A00-class microcars to C-segment SUVs and MPVs. For 2025, the company targets production of at least 10,000 EX5 and E5 units, with potential to reach 20,000 units and revenue of 1–2 billion RMB. By 2026, production could hit 100,000 units with revenue close to 10 billion RMB; by 2027–2028, sales are projected to exceed 300,000 units.
Industry Challenges Ahead
The auto industry is undergoing rapid reshuffling, with fierce competition in China’s NEV market. Many automakers—both traditional OEMs and startups—face shrinking room for survival due to limited financing and cutthroat competition. For WM Motor, even with production resumption, challenges remain: regaining consumer trust, weak profitability, and lack of competitiveness in product, marketing, and distribution channels. Whether WM Motor can achieve its ambitious goals will soon be tested by the market.
