Zotye Auto prepares for IPO via integration in sales channels, business units

Gasgoo.com (Shanghai July 20) - Zotye Auto is currently in full preparation for its IPO, with entire integration in the company’s sales channels, structure of business units, and personnel distribution in management level.

Founded in 2005 by Zotye Holding Group, Zotye Auto is a Chinese automobile manufacturer based in Zhejiang, China. Zotye's total revenues in 2006 were 2.88 billion RMB (about €290 million). The company is ruled under a system of business units, each of which is an industrial cluster. For example, Changsha Zotye business unit is home to two production bases and other complement plants. And Hangzhou business units are a manufacturing base with an integration of production delivery and sales.

According to an announcement released by Zotye recently, the sales business of Z300 series and Z500 series, previously belong to Hangzhou Zotye business unit will be transferred to Changsha Zotye business units. Besides, Hangzhou business unit’s X5 will be integrated into the Jintan Zotye. Because the company doesn’t supply its entire portfolio for each dealer, the changes in the sales ownership will trigger the alternation in the dealer channels.

In addition to sales channels and business units’ structure, a big alternation will happen in the management human resource layout. The new personnel appointment has been announced inside the company.

Zotye reported sales of 101,018 units in the first half of the year, increasing 43.86% from a year earlier. In particular, the model Zotye T600 from the Yongkang Zotye business units sold 55,667 units in the first half of the year, accounting for about half of the overall sales volume.