(Yicai) Nov. 18 -- Hycan Automobile Technology, a new energy vehicle brand backed by Chinese auto giant GAC Group, has closed its Shanghai branch and failed to pay relevant severance packages in time amid operational difficulties.

Hycan said it would pay severance packages by Oct. 31, but payments are over two weeks overdue, several former employees at the carmaker's Shanghai office told Yicai yesterday. "They keep delaying the compensation."

Guangzhou-based Hycan has downsized to about 50 workers who maintain basic operations at its headquarters in Nansha district, according to ex-staffers, adding that the firm is reportedly planning a restructuring.

Hycan did not respond to Yicai for more information on the case.

Hycan sales plunged 82 percent to just 110 units last month from a year earlier and 83 percent to 4,388 units in the ten months ended Oct. 31, according to data released by GAC.

In early September, the Shanghai Market Supervision Administration failed to reach Hycan at its registered address and added the firm's local branch to its abnormal operation list.

GAC and Nio set up GAC-Nio in 2018, which was rebranded to Hycan in 2021 after Pearl River Investment Management Group became its largest shareholder, while the electric vehicle startup's stake in the joint venture was diluted to 4.5 percent before selling its remaining shares in 2022.

GAC owns a 4.5 percent stake in Hycan, while its NEV arm, GAC Aion, holds a 21 percent stake. The JV produces four pure EV models priced between CNY100,000 and CNY400,000 (USD13,800 and USD55,200).

Editors: Tang Shihua, Martin Kadiev