Zotye Auto Subsidiary Resumes Operations, but Full Vehicle Production Remains Uncertain

On March 18, Zotye Auto (000980.SZ) announced that its wholly-owned subsidiary, Zhejiang Shenkang Automotive Body & Die Co., Ltd., has officially resumed production. The move aims to strengthen its component supply system and lay a solid foundation for the development and manufacturing of new vehicle models. Shenkang Body boasts over 20 years of experience in automotive dies and body parts manufacturing. However, as it is still in the early stages of resuming operations, ramping up capacity, coordinating with suppliers, and ensuring quality control will require time to validate. The company acknowledged that due to financial pressures and debt burdens, a full recovery of its vehicle manufacturing business remains highly uncertain. According to data, Zotye has reported losses for seven consecutive years since 2019, with zero vehicle production in 2024. The company forecasts a net loss of RMB 281 million to RMB 417 million for 2025. Previously, Zotye repaid a total of RMB 3.85 billion in debts to two banks and initiated recruitment across multiple positions in preparation for resuming production.