On September 9, Zotye Automobile released an announcement addressing unusual fluctuations in its stock trading. The announcement revealed that its new A0-class models have officially entered the stage of batch trial production, with a primary focus on overseas markets. However, the announcement also warned that there are still uncertainties regarding regulatory certifications, channel establishment, and market demand in the targeted regions. As of now, no sales have been recorded, and ongoing capital investment is necessary for subsequent mass production and market introduction, with the availability of funding remaining uncertain.

This announcement came amidst a cumulative increase of over 20% in Zotye Automobile's stock price over two consecutive trading days, September 8 and September 9, which triggered abnormal trading activity. The company clarified in the announcement that, after verification, no corrections or supplements to previously disclosed information were required, and the major shareholder had no significant undisclosed matters.

From a product development standpoint, this A0-class model is a key product in Zotye Automobile's plan to resume vehicle production. According to previously released information, the model has completed its design freeze and supplier selection and is currently undergoing testing and validation. The company aims to launch production within the year. Zotye Automobile has some historical experience in A0-class new energy vehicles, having previously launched models such as the Zotye E200 and Yun100. This new A0-class model represents an iterative development based on existing platform experience.

Regarding its overseas market strategy, Zotye Automobile has designated 2026 as the inaugural year for its "overseas priority" development approach, with a focus on Africa, Southeast Asia, Central and South America, and South Asia. Among these, the Indian market is the most concretely advanced direction. In July 2026, Zotye Automobile signed a master agreement for a KD (knocked-down) cooperation project with India's Kaly Emotors, planning to jointly establish an SKD (semi-knocked-down) assembly project with an annual capacity of 30,000 units. The initial model to be introduced will be the A0-class, with the Indian partner responsible for local production lines, qualifications, and factories, while Zotye provides model technology and component parts. The core advantage of this approach lies in its light asset investment and flexible exit strategy, effectively avoiding India's high import tariffs on complete vehicles. However, as of the announcement date, the project is still in the planning stage, with no actual vehicle production yet achieved. Additionally, Zotye Automobile has reached a strategic consensus on comprehensive new energy vehicle industry chain cooperation with Indonesia, but no formal agreement had been signed as of July 2026.

Financially, Zotye Automobile continues to face substantial operational challenges. In the first half of 2026, the company reported revenue of RMB 190 million, a year-on-year decrease of 32.08%; net profit attributable to shareholders of the listed company was RMB 80.3893 million, marking a turnaround from loss to profit. However, this profit was primarily derived from non-recurring items, including approximately RMB 200 million in compensation from the dissolution of inefficient subsidiaries and approximately RMB 30 million in non-operating income from litigation settlements. After excluding non-recurring items, the company reported a net loss of RMB 152 million for the first half of the year, a year-on-year increase of 40.31%, indicating continued losses in its core business. The company explained that the primary reason for the expanded loss was the significant increase in R&D expenses for the first model on the A0-class platform, which was nearing production launch but had not yet generated any production or sales. Simultaneously, the automotive stamping business was in the process of ramping up capacity and had not yet generated significant profits.

Moreover, Zotye Automobile faces other uncertainties. In July 2026, the company came under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure regulations, with the investigation still ongoing. Previously, there were market rumors that the company had been removed from the Ministry of Industry and Information Technology's (MIIT) list of automotive manufacturers. Zotye Automobile responded by stating that this information was false and that it remains a legally qualified enterprise listed in the MIIT's "Catalog of Road Motor Vehicle Production Enterprises."

In conclusion, Zotye Automobile's entry of its A0-class models into batch trial production marks a phased milestone in its vehicle production resumption process. However, numerous challenges remain, from trial production to mass production and from mass production to overseas sales, including regulatory certifications, channel establishment, and financial support. The company's ongoing core business losses and unresolved financial pressures mean that the success of this strategy still hinges on the availability of subsequent funding and the actual progress of overseas projects.