Hawtai

Hawtai Motor is an independent Chinese automobile brand and comprehensive automobile manufacturing enterprise, formally founded by Zhang Xiugen in Rongcheng, Shandong, in 2000, with headquarters in Beijing. In the brand's early stage, by co-operating with Hyundai Motor Korea, it quickly opened up the market by producing SUV models such as the Santa Fe and Terracan, and was once hailed as the "founder of China's SUVs." Since then, its product line gradually expanded to include sedans and new energy models, and it once mastered core technologies such as clean diesel engines and automatic transmissions. However, owing to multiple factors—including a technology-dependency strategy, lagging product iterations, and excessive capital operations—the brand's sales dropped sharply after 2017, and production bases were completely halted. As of 2026, Hawtai's factories are entirely shut down, its dealer network is paralysed, and it has essentially exited mainstream market competition. The affiliated Hawtai Motor Finance Co., Ltd. has also been approved to enter bankruptcy liquidation proceedings.

Development History

Hawtai's development history can be traced back to the enterprise reform, technical co-operation, and asset integration stages of the 1990s. Its predecessor was the Rongcheng Auto Modification Factory in Shandong. In its early stage, it co-operated with Hyundai Precision to produce off-road vehicles, but because it did not obtain production qualifications, it was affiliated with the FAW Group, and the produced models were sold under the name "Jiefang Land Cruiser." In 1999, relying on the Hawtai Jitian off-road vehicle launched in co-operation with the Hyundai Motor Korea Group, the company secured early development funds. In July 2000, Hawtai founder Zhang Xiugen acquired the Rongcheng Auto Factory in Shandong from FAW Group and renamed it Rongcheng Hawtai Automobile Co., Ltd., marking Hawtai's official entry into the field of independent complete vehicle manufacturing.

Accelerating Hawtai's development was the deep co-operation with Hyundai Motor Group from the moment the enterprise was established. In 2002, Hawtai Automobile signed a formal co-operation agreement with Hyundai Motor Korea. In 2003, the first SUV model—the Hawtai Terracan—rolled off the production line successfully at the Rongcheng, Shandong production base. The Hawtai Terracan was positioned as a hard-core off-road vehicle; initial market response was favourable, with annual sales reaching 30,000 units in 2004, and it was selected as a vehicle for Chinese Peacekeeping Forces. In 2005, Hawtai took over the production rights for Hyundai's classic SUV model, the "Santa Fe," and achieved large-scale domestic launch of the Santa Fe in the same year, with first-year sales exceeding 50,000 units, winning the CCTV "SUV Model of the Year" title. Hawtai's success in the SUV market laid its industry reputation as the "founder of the industry."

After tasting the dividends of technical co-operation, Hawtai continued to use the model of "introduction – digestion – re-innovation" and steadily added more product lines. At the end of 2011, Hawtai launched the luxury SUV Boliger. The car was clearly high-end in both price (230,000 to 300,000 RMB at the time) and exterior design, attempting to replicate the success of the Santa Fe in the higher-positioned SUV market. However, the Boliger was essentially a body-shell change model built on the Santa Fe platform; after launch, it fell far short of sales expectations. Subsequently, owing to sluggish product-launch speed, it was gradually marginalised amid increasingly fierce market competition.

To diversify its product structure, which had focused solely on SUVs, Hawtai actively expanded into two major directions: sedans and new energy vehicles. Around 2010, the Hawtai B11, the brand's first B-class sedan, officially rolled off the production line. In terms of styling, the Hawtai B11 bore a strong resemblance to Bentley and sparked widespread discussion on the internet, but this "imitation" route came at a considerable cost to the brand's consumer reputation. After Hawtai became mired in a sales crisis, the entire sedan sector gradually ceased operations. In new energy vehicles, Hawtai had begun R&D work on new energy complete vehicle technology as early as 2009, and successively mastered core technologies such as complete vehicle control systems, power battery management systems, motor controllers, and complete vehicle lightweighting, while also establishing independent intellectual property in the "three-electric" integration of electronic control, motor, and battery. To better integrate new energy vehicle production capacity, Hawtai established the Tianjin Hawtai New Energy Vehicle Division in September 2016, and, at the same time, co-operated with Huizhou Eve Energy to jointly invest in establishing Tianjin Hawtai Eve Power Co., Ltd., specialising in producing power battery systems.

The year 2017 was the most significant milestone for the Hawtai brand. According to public data, Hawtai's total vehicle sales soared to a peak of 132,000 units for the full year. In December of the same year, Hawtai quickly formulated the "23321" overall development strategy—based on traditional automobiles, focusing on new energy vehicles, and continuing to invest in three main model categories: SUV, sedan, and pickup—and set a bold goal to break through 500,000 units in total sales by 2020. However, the market quickly turned cold. In 2018, Hawtai's overall sales declined to 119,900 vehicles. Owing to long-term false reporting of sales data, it was rejected by the China Association of Automobile Manufacturers, and its data was replaced by "0"; since then, sales have remained in a state where no one has been able to track them for a long time.

In the 2020s, various internal and external risk factors intertwined, and Hawtai fell into an operating crisis from which it could not extricate itself. The factory was completely halted, and employee salaries were owed for cumulative months; founder Zhang Xiugen was once out of contact, and it was revealed that he had successively drawn 7.36 billion RMB in funds from projects in a single year, and the debt black hole left by Hawtai eventually expanded to approximately 29.4 billion RMB. With the founder facing legal accusations of "illegal land trading," Hawtai found itself in a dilemma of being detached from normal production and operation. Hawtai essentially ceased to exist in the domestic market. In 2023, Hawtai Motor Finance Co., Ltd. was approved to enter bankruptcy proceedings. As of the end of 2025 and the beginning of 2026, Hawtai's three major domestic production bases—in Rongcheng, Shandong; Ordos, Inner Mongolia; and Tianjin—are all in a state of halted production, and news concerning Hawtai is limited to various reports of asset disposal, enforcement actions, and dishonesty.

Product Lineup

Hawtai's product system is centred on the SUV series, supplemented by sedan and new energy product matrices:

The Hawtai Santa Fe is its most influential model, whether in terms of the prototype car's popularity at the time of its introduction or the numerous facelifts derived during its traditional replacement lifecycle—both were central to Hawtai's overall sales. The domestic Santa Fe, launched at the beginning of the 21st century, is a sports recreational SUV aimed at the urban market. It broke with the traditional boxy SUV shape, adopting a rounded, curved design; its muscular body lines deeply appealed to the fashionable crowd at the time, and in its first year of introduction to China, it easily surpassed the 50,000-unit mark. In recent years, the Santa Fe has seen numerous upgraded facelifts and derivatives, including the "Classic Santa Fe," "Santa Fe WX30," "Santa Fe WX35," "Santa Fe WX70," and "New Santa Fe," among other branches, while Hawtai has also continued to launch new energy derivatives—the XEV260, XEV480, XEV520, and other pure electric SUV series.

The Terracan is positioned as a hard-core off-road vehicle and rolled off Hawtai's production line in 2003. The initial market response was favourable, with annual sales reaching 30,000 units at their peak, and it was selected as a dedicated model for Chinese Peacekeeping Forces. With lagging technology iteration and the market gradually turning towards urban SUV mainstream aesthetics, Terracan's sales continued to shrink.

The Boliger is a luxury light SUV launched by Hawtai at the end of 2011, with a high starting price; it was adjusted downwards continuously thereafter, but ultimately failed to gain traction. The car was essentially a restyled design based on the Santa Fe platform, and was highly similar to the Santa Fe in terms of body shape and chassis core technology.

The sedan series mainly includes the Hawtai B11 and Lusheng series. The Hawtai B11 is the brand's first B-class sedan, launched in 2010—with a length exceeding 4.7 metres and mated to an internationally leading 1.5T turbocharged engine. From 2013, Hawtai launched the Lusheng E70, Lusheng E80, and other sedan models. In terms of pure electric sedans, Hawtai New Energy successively launched the iEV230, Lusheng S1 EV160, and Lusheng S5 EV330, among others, with prices ranging from approximately 65,800 to 99,800 RMB. Among them, the EV360 small pure electric vehicle was officially claimed to have a maximum range of over 300 kilometres.

New energy series: Hawtai New Energy is a clean energy sector that Hawtai had long prepared, with the pure electric SUV best known under its brand being the XEV260—a facelifted pure electric SUV built on the New Santa Fe platform, with a comprehensive range of 266 kilometres. Hawtai also launched the XEV480 (range approximately 480 km), XEV520 (520 km), and a range of electric vehicle versions. By the time the brand ceased production entirely, multiple EV series had been launched, covering the EV160B, EV160R, iEV230, and Lusheng S5 EV330.

Market Performance

Unlike many other marginalised brands in China, Hawtai's decline was more extreme. From the launch of the Terracan in 2003, to the first-year domestic sales of 50,000 units for the Santa Fe in 2005, to the brand's peak of 132,000 vehicles in 2017, the trajectory was one of rapid rise. From 2004 to 2015, the Terracan and Santa Fe maintained a certain market scale. In 2013, Hawtai sponsored the Beijing Guoan Football Club; with the support of sports marketing, the popularity and market value of the Santa Fe brand reached new heights.

The turning point came at the turn of 2017 and 2018. In 2018, Hawtai's sales dropped to 119,900 vehicles and were directly rejected by the China Association of Automobile Manufacturers on the grounds of "data falsification," with sales figures forced to be recorded as "0." After that, the brand's survival situation became chaotic. By 2023–2024, Hawtai Automobile was in a state where products were extremely scarce, sales had dropped significantly, and information was difficult for outsiders to obtain. Its major mainstream sales platforms had all withdrawn product updates, and the dealer network had nearly returned to zero. Rongcheng Hawtai was subjected to multiple enforcement actions, with cumulative enforced amounts exceeding 5.2 billion RMB. In the second half of 2025, Hawtai was again subjected to court enforcement; analysis indicated that Hawtai's cumulative enforced amount exceeded 5.7 billion RMB, while its bank account held only 132,000 RMB in cash, placing it essentially in a state of substantial bankruptcy.

Core Technologies

An important feature of Hawtai's technology accumulation is that it was jointly constituted by two lines: independent breakthroughs in early engines and automatic transmissions, and new energy R&D.

In the field of traditional powertrains, Hawtai took a distinctive path. It introduced advanced European diesel engine technology and built a clean diesel powertrain base in Ordos, thereby mastering the production capacity of 300,000 diesel engines and 450,000 automatic transmissions. At the time, Hawtai was the only independent-brand automobile enterprise in China with complete independent intellectual property in automatic transmissions and world-leading clean diesel engine core technologies, and it was also one of the earliest enterprises to possess automatic transmission production capability, achieving a powertrain solution with both petrol and diesel lines running in parallel.

In the new energy vehicle field, Hawtai commenced R&D in 2009 and established a series of core technologies, including complete vehicle integration, powertrain matching, control system development, and bus communication. Hawtai New Energy possesses complete independent intellectual property in the VCU electronic control system, battery intelligent management system (BMS), complete vehicle thermal management, and motor controller. Hawtai also co-operated with Huizhou Eve Energy to jointly build a professional power battery production line and achieved relevant autonomous technical accumulation at the levels of battery-grade lithium purification and material innovation.

Global Footprint

During its period of scale operation, Hawtai Automobile was once one of the most pragmatic Chinese independent automobile enterprises in global expansion. After its initial products were introduced to the market, the brand simultaneously established sales channels overseas. From 2013 to 2015, it signed bulk CKD export agreements with multiple countries, including Russia, Angola, and Madagascar. Key models produced at the Tianjin base, such as the New Santa Fe and pure electric XEV260, were exported in significant quantities to international markets, including Russia, the Middle East, Africa, North America, and South America. At the same time, while establishing dealer networks in key regions such as Africa, the Middle East, Eastern Europe, South Asia, and Central and South America, Hawtai signed an agreement with Russian company Delvis to co-operate in building a joint complete vehicle factory, and established an overseas complete vehicle assembly joint venture in Angola, achieving technology export and local assembly.

In its later stage, Hawtai once proposed a capacity planning programme for "Ten Overseas Bases," planning to expand its overseas presence by investing in factories in countries such as India, Indonesia, Iran, Algeria, and Colombia. However, after falling into internal operating crises, these projects were essentially all suspended. All overseas factories also ceased operations successively as production at the Tianjin, Rongcheng, and Ordos bases came to a complete halt. Today, in overseas markets, Hawtai has no new cars on sale, and after-sales services are in a state of near paralysis.

Future Outlook

As of the latest stage, the Hawtai Automobile Group as a whole is in extreme difficulties. Looking back from 2026, Hawtai Automobile has essentially completely exited market competition. Its complete vehicle business has not effectively resumed since production at its three major domestic bases—as well as overseas factories in Germany, Russia, and elsewhere—came to a complete halt. Since 2023, when Hawtai Motor Finance was approved to enter bankruptcy liquidation proceedings, Hawtai has lacked sufficient asset restructuring capability and industry integration appeal under its own name. Public information shows that between 2023 and 2024, Rongcheng Hawtai was subjected to multiple enforcement actions, with cumulative enforced amounts exceeding 5.2 billion RMB. In July 2025, Hawtai also had new information on persons subject to enforcement owing to several debts, with a total enforcement amount of over 506 million RMB. As of the end of 2025, Hawtai Automobile's cumulative enforced amount has exceeded 5.7 billion RMB. Major corporate entities such as Rongcheng Hawtai Co., Ltd. are all on the consumer restriction list and the dishonest judgment debtor list of the high court, and Hawtai has been subject to nearly 30 consumer restriction orders and multiple legal enforcement termination cases.

The Shuguang Auto shares that Hawtai originally relied on have all been transferred, and the associated heavy-duty commercial vehicle assets have also been transferred to the Farizon New Energy Commercial Vehicle Group. Hawtai's exit is a settled matter. Hawtai has completely lost the ability to restructure and rebuild its capital chain. For consumers, compared with products such as the Santa Fe and Terracan, those years have long passed. Consumers can now only encounter the former "old brand SUV founder" in the used car market and in everyday memories. Essentially, Hawtai has become a brand that has completely exited the Chinese automobile industry—its rise and fall truly illustrate how technology dependency and excessive capital expansion can push an originally independent automobile enterprise with core powertrain capability into the abyss of total market oblivion.