IM Motors Dealers Face Operational Issues Across Multiple Regions, Causing Refund Delays; Company Vows Swift Action

Recently, IM Motors users in multiple cities including Kunming and Zhuhai reported that after paying for their vehicles at local dealerships, those stores suddenly encountered operational irregularities, leaving customers unable to obtain refunds. Some car owners said they had not yet been contacted by the company officially and had only received a brief consoling text message. In response, IM Motors stated that due to the large total amount of funds involved and the need to coordinate with multiple institutions, resolving the issue will take time. The company emphasized it is working diligently to expedite the process and will actively address users’ legitimate concerns. Meanwhile, employees at the affected dealerships are also seeking redress, claiming they have not received salaries for several months from the dealers. They are urging IM Motors to provide solutions for staff alongside resolving customer issues. It is understood that IM Motors initially adopted a direct-sales-focused omnichannel retail model but has gradually shifted toward an authorized dealer-dominated approach. This shift contributed to sales growth—delivering a total of 40,087 vehicles from January to June 2024, a 58% year-over-year increase. However, as sales volumes rose, pressure on dealers intensified. According to data from the China Automobile Dealers Association, the inventory warning index for auto dealers reached 57.2% in June 2024, up 0.6 percentage points year-over-year. Most dealers now face multiple profitability challenges, including price inversions, high inventory levels, and declining customer traffic, leading to widening per-vehicle losses and tight cash flow.