IM Motors Steps In as Multiple Dealerships in Kunming and Zhuhai Shut Due to Dealer Cash Flow Crisis

Multiple IM Motors stores in Kunming and Zhuhai were successively shut down in early July, leaving customers unable to take delivery of their vehicles or obtain vehicle conformity certificates required for license plate registration. The affected stores were operated by affiliated dealers Kunming Zhihe Yuexing Automotive Sales & Service Co., Ltd. and Zhuhai Zhihe Yuexing Automotive Sales & Service Co., Ltd., whose legal representatives and senior executives hold overlapping positions. An affiliated store in Jiangmen has also ceased operations, and all three locations have been removed from IM Motors’ official mini-program. On July 8, Kunming Zhihe Yuexing issued a public notice stating that short-term cash flow difficulties had caused delivery delays and confirmed it had reported the issue to IM Motors headquarters. On July 21, IM Motors released a statement saying its investigation found that Kunming Zhihe Yuexing’s capital chain had collapsed due to private lending, affecting both the acquisition of conformity certificates and vehicle deliveries. IM Motors added that as of July 17, it had completed a review of affected customers and resumed issuing conformity certificates and delivering vehicles starting July 18, with all normal orders expected to be fulfilled by that weekend. After-sales services for existing owners in the two cities have been transferred to other local IM Motors stores. Some consumers reported that the implicated stores had induced them to transfer full payment into the dealers’ corporate accounts by offering unusually high “delayed-delivery cash rebates” ranging from RMB 40,000 to RMB 70,000—far exceeding typical industry levels. One consumer paid in full at a Zhuhai store in June, but the store closed just 15 days after payment, and delivery remains unfulfilled to date. Vehicle conformity certificates are typically released by financial institutions only after dealers settle inventory financing obligations. In this case, dealers’ failure to repay corresponding loans prevented timely certificate issuance to consumers. To date, there is no evidence suggesting IM Motors headquarters instructed dealers to implement abnormal promotions or enforce excessive inventory stocking. IM Motors stores in Beijing were confirmed through on-site visits to be operating normally and unaffected. There are currently no signs of widespread operational difficulties across IM Motors’ national dealer network. As of July 21, phone numbers listed in the business registrations of the implicated dealers went unanswered. Affected consumers have formed a维权 (rights-protection) group of nearly 300 members, with some reporting they have yet to receive specific updates on resolution progress.