Has Zotye Auto Really Stopped Production?
2 Answers
On December 24, 2020, Zotye Auto Co., Ltd. issued an announcement stating that its controlling shareholder, Teemo Group Co., Ltd., had been severely insolvent with no ability to continue operations and no possibility of recovery. Consequently, the court ruled to terminate the reorganization process and declared Teemo Group bankrupt. Below are the relevant details: 1. Data Overview: Zotye Auto's Q3 2020 report showed that the company generated revenue of 981 million yuan from January to September, a year-on-year decline of 72.68%. The net profit attributable to shareholders of the listed company was -1.563 billion yuan, a year-on-year decrease of 105.67%. In the first half of 2020, Zotye Auto produced only 574 vehicles and sold 1,417 vehicles. Currently, Zotye Auto's main operations are effectively in a state of production suspension. 2. Recent Developments: Although Zotye Auto stated that the company remains independent from Teemo Group in terms of assets, business, and finance, and that the parent company's bankruptcy would not significantly impact its daily operations, the subsequent disposal of Teemo Group's bankruptcy may lead to changes in Zotye Auto's actual control. Since rumors of bankruptcy emerged in late 2019, Zotye Auto's situation has progressively worsened.
I've been closely following the changes in domestic car brands recently, and many people have been asking whether Zotye Auto has ceased production. Indeed, since around 2020, due to financial crises and various operational issues, Zotye's actual production has largely been suspended. It's not an official complete shutdown, but most factories have stopped operations, and new product development has also stalled. It's truly lamentable, after all, Zotye was once famous for imitating luxury cars, like the Porsche-inspired model that was quite popular for a while. Now, the market is too competitive, and under the wave of electrification, many established domestic car brands are struggling to survive. I suggest car owners pay attention to inventory vehicles and after-sales maintenance, as spare parts may gradually become scarce. When buying a new car, it might be better to consider more stable brands like BYD or Geely, to avoid future repair troubles.
