With the demand for electric vehicles in China right now, it seems like domestic automakers are making a killing in terms of sales. But the cutthroat nature of the automotive industry means that it’s all about the survival of the fittest. Unfortunately, WM Motor has succumbed to market pressures and ceased operating as a result.

According to this Reuters report, the Shanghai-based startup has just declared bankruptcy. Some of the factors influencing its decision are the sluggish recovery of the Chinese economy after COVID-19, fluctuating prices of raw materials, and struggles in getting more capital. WM Motor owns the Weltmeister brand of electric vehicles.

WM Motor was founded in 2015, and its financial health had reportedly been in the red with mounting losses in the years leading up to the pandemic. On its official Weibo account, the company says that there are plans for revival with reorganization and new investors.

Its local subsidiary, WM Motor Philippines, has yet to release a statement. The distributor launched the brand in July last year.