Zotye Automotive Launches Large-Scale Recruitment to Struggle for Survival After Years of Production Suspension

Image source: Screenshot from Liepin website

Zotye earned the nickname "ancestor of copycat cars" by mimicking luxury vehicle designs and selling them at low prices.

Sales peaked at 333,100 units in 2016. Yet, lacking core technology and plagued by quality issues, the company has been mired in production stoppages since 2020. Conditions deteriorated further in 2025: operations remained idle in the first half due to a funding crunch, and the company posted a net loss of 223 million yuan in the first three quarters. Adding to the pressure, a court ordered the forced dismantling of the general assembly line at its Chongqing branch in September 2025.

To ease the crisis, Zotye has taken a series of recent steps, including offloading stock to generate liquidity and reaching settlements with bank creditors that require repayment of 405 million yuan by January 31, 2026. Management has also been in flux, with two chairmen stepping down within the past three months alone. Han Biwen, the current chairman, took the helm on January 15, 2026.

Despite its clear intent to resume production, Zotye's third-quarter report for 2025 reveals owners' equity of just 12.58 million yuan and a staggering debt-to-asset ratio of 99.41%. Whether this massive recruitment drive can actually propel the marginal automaker back onto the track remains a daunting test, fraught with challenges in funding, supply chains, and market acceptance.