Kunming IM Motors Authorized Dealer Suddenly Shuts Down; Manufacturer Steps In to Protect 190+ Owners

Recently, IM Motors’ authorized dealer in Kunming, Yunnan—Kunming Zhihe Yuexing Automobile Sales & Service Co., Ltd.—ceased operations due to a broken capital chain, leaving more than 190 vehicle owners unable to take delivery of their cars or complete vehicle registration. On July 7, the brand’s user center in Guandu District, Kunming, was found deserted, with display vehicles and office equipment removed and all staff having resigned en masse. Some customers who paid for their vehicles while the store was still operating normally immediately received notifications that their sales representatives had quit. This incident has exposed systemic issues across the entire car-buying process: customers who paid in full but haven’t taken delivery, those who took delivery but cannot register their vehicles, and existing owners worried about future maintenance and warranty services. The legal representative of the implicated dealership stated that the primary reason for the shutdown was excessively high operating costs—its three stores incurred annual rent exceeding RMB 3.6 million and monthly payroll expenses of approximately RMB 500,000. Sales revenue and manufacturer rebates were insufficient to cover these costs, ultimately trapping the dealer in a vicious cycle of using newly collected customer payments to finance redemption of earlier vehicle certificates. Following the incident, IM Motors swiftly dispatched a dedicated task force to Kunming and announced a comprehensive remediation plan: - For customers who have paid but not yet received their vehicle compliance certificates, the manufacturer will fully fund the redemption of these certificates to ensure vehicle registration. - For customers who placed orders but have not yet received their vehicles, IM Motors will honor original purchase prices and benefits and coordinate deliveries through nearby dealerships. - All existing vehicle owners will retain their official after-sales rights, including full vehicle warranties and routine maintenance services. Service packages previously purchased from the closed dealership will also be honored by the manufacturer through coordinated arrangements.