Photo/Zhang Yun

Dec. 17 (NBD) -- China's Singulato Motors seemed to have lagged behind other automotive upstarts like NIO and Xiaopeng in the race of car manufacturing, as rumors have it that it is now facing a financial strain. 

The Beijing-based electric car startup recently announced its detailed plan for payroll payment, about two months after the company sent e-mails notifying all its employees of a delay in payment of salaries. 

According to the plan issued last Monday, the company paid 65 percent of salaries for October to employees in December, with the remaining 35 percent scheduled to be paid last Friday. Salaries for November will be paid in late December. But salaries for September will be dealt with as loans to Singulato, and will be paid back in January 2019 at an annual interest rate of 10 percent. 

It appears the automotive startup is trying to alleviate cost pressure by paying salaries in installments. 

According to Tianyancha.com, a business inquiry service provider, Singulato has cumulatively raised more than 7 billion yuan (1.0 billion U.S. dollars) in six rounds of financing. However, it is burning cash fast. 

In October this year, construction commenced on the startup's new-energy commercial vehicle base in Zhuzhou, Hunan province, and the total investment in the base will reach 5 billion yuan (725.6 million U.S. dollars). 

In late March, the company said it plans to invest 15 billion yuan (2.2 billion U.S. dollars) in eastern China's Suzhou over the next five years to set up a production base and a global research and development center, and establish an industrial investment fund worth 10 billion yuan (1.5 billion U.S. dollars) there. 

When reached by NBD, a source with Singulato said the company is operating smoothly, and has received strong support from multiple local governments and investment institutions. There is no capital issue at all.

In a field visit to the automotive firm's experience center at Lujiazui, Shanghai, International Finance News was told by a security guard there that the center is currently being decorated and there is no sign of shutdown, but it won't be able to start business until next year. 

Moreover, a supplier of Singulato said to the news outlet that the automaker is making payments to suppliers as usual. 

At present, Singulato is going full steam ahead with plans to produce the iS6 in volume, the above-mentioned source told NBD. The company's first mass-production model, the iS6, has been listed among China's newest batch of new-energy vehicles for recommendation. 

At a conference in late October, Shen Haiyin, CEO of Singulato, said the iS6 will be brought to market in early February of next year, instead of the end of this year. 

With regard to the postponed launch of the model, a source with Singulato said the company is strengthening quality control and conducting vehicle tests under special circumstances such as in plateau regions, as rival models have been heavily criticized for quality issues after their launch.

Email：lansuying@nbd.com.cn