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Zotye Auto's Mold Factory Fully Online, New Models Enter Batch Verification Phase
Shanghai, April 15, 2025 – Zotye Auto has taken another step toward restarting vehicle production, confirming that its mold factory is now operating at full capacity after delivering tooling for upcoming models. The company, which resumed partial operations in March, has officially moved its new vehicle project into the production batch verification stage, according to a recent update.
The mold factory, a wholly owned subsidiary named Zhejiang Shenkang Auto Body Mold Co., had shut down during Zotye's financial turmoil. Its full return to work is a critical milestone: tooling molds are the foundation for stamping body panels and components, and without them, mass production of cars is impossible. With the tooling now delivered, the company can begin producing prototype parts and assembling test vehicles for validation.
Industry analysts note that while the mold factory restart is a positive signal, Zotye still faces an uphill battle to resume full-scale vehicle output. "The batch verification phase typically lasts three to six months for a single model, and even then, there are no guarantees of smooth mass production," said Zhang Wei, an independent auto analyst in Shanghai. "Zotye's biggest hurdles are supplier confidence, working capital, and residual brand damage from its 2020 bankruptcy risk."
According to Zotye's semi-annual report released in late August 2024, the new vehicle project's styling has been frozen, engineering data released, and most suppliers selected. Component and vehicle testing have begun, and the company is retrofitting factory production lines. In-house tooling and fixtures are progressively entering design and manufacturing. Yet the report explicitly stated that the vehicle business had not resumed in the first half of the year. Only a small number of overseas orders were shipped, while revenue continued to come primarily from auto parts and door manufacturing.
The company's revival plan has been closely watched since it restarted operations on March 18, 2024. At that time, Zotye cautioned that the restart was still in its infancy, and ramping up capacity and synchronizing the supply chain would take time. A full recovery of its vehicle business remained uncertain, it added.
From a broader perspective, Zotye's progress mirrors the challenges faced by other struggling Chinese automakers attempting comebacks. Unlike peers like Haima or Lifan, which have pivoted to new energy vehicles or joint ventures, Zotye has yet to announce a clear electrification strategy. Its new models are widely expected to be internal-combustion vehicles, which could limit their appeal in China's rapidly electrifying market. "In 2025, launching a new gasoline-only model without significant differentiation is a tough sell," said Li Na, a senior analyst at AutoForesight. "Zotye may need to partner with a technology company or seek a strategic investor to gain credibility."
Despite these challenges, the mold factory's full resumption is a tangible sign of progress. The company's stock, traded on the Shenzhen Stock Exchange, has remained volatile but showed a slight uptick following the announcement. For now, Zotye's near-term priority is to complete batch verification and begin pilot production, which could take several months. If successful, the first new Zotye vehicle could roll off the assembly line by late 2025 or early 2026.
However, the company's financial health remains precarious. Its semi-annual report showed a net loss of about 1.2 billion yuan ($166 million) for the first half of 2024, though that was an improvement from the year-ago period. Cash and cash equivalents stood at 890 million yuan, barely enough to sustain operations for a few quarters. The company has not disclosed any new funding rounds or asset sales since its restart.
In the meantime, Zotye's suppliers and local governments are watching closely. The mold factory job is a key employment base in Yongkang, Zhejiang Province, where the company is headquartered. Local officials have expressed support for Zotye's revival, but they also expect tangible results soon.
The next milestone will be the completion of batch verification and the start of small-scale production. If the company can demonstrate that its new models meet quality and safety standards, it may be able to secure additional financing from banks or investors. For now, Zotye's comeback story remains a work in progress, with the mold factory marking the clearest advance yet.
