- Over 200 IM Motors customers face undelivered vehicles or refund hurdles after multiple dealerships reportedly shut or went AWOL.
- IM Motors pledges funding support, case-by-case verification, and legal referrals but customer responses remain slow and inconsistent.
- Dealership strain mirrors wider EV retail pain as rising inventories and thin margins squeeze single-store operators nationwide.
Recently, vehicle owners in cities including Kunming, Zhuhai and Shanghai have reported that several IM Motors dealerships have encountered operational problems, with some allegedly shutting down.
Some customers said they paid for vehicles but later faced issues including dealership closures, delayed deliveries or difficulties obtaining refunds.
A vehicle owner from China’s Kunming said that in June this year, he purchased an IM L6 Max at a local dealership.
Based on sales commitments, including manufacturer rebates, 618 promotional discounts and dealer subsidies, the total registration rebate was expected to reach RMB 35,000 ($5,162).
The customer first paid a RMB 5,000 ($737) deposit through the IM Motors app before paying the remaining vehicle balance to the dealer, bringing the total payment to around RMB 192,700 ($28,407).
However, when preparing to pick up the vehicle in July, he found that the dealership was operating abnormally.
According to customer feedback, more than 200 consumers have joined related complaint groups, with some users having already paid the full amount but still not receiving their vehicles.
Similar incidents have also been reported outside Kunming. On July 14, an IM Motors user center in Zhuhai issued a closure notice, citing dealer operational adjustments as the reason for suspending business.
Some customers who had already made payments reportedly faced vehicle delivery issues.
In addition, a Shanghai dealership was reported to have involved a situation where the person in charge allegedly left with payments from multiple customers. The case has entered police investigation procedures.
In response to customer complaints, IM Motors had previously sent messages to some users, stating that for customers who had fully paid for their vehicles but had not yet received vehicle certificates.
The company would provide funding support and coordinate with financial institutions to resolve certificate-related issues, with associated costs covered by IM Motors.
However, some customers said they had not received further communication after the announcement, and the response speed from the dedicated handling team did not meet expectations.
IM Motors responded that, due to the large number of affected users, the substantial amount of funds involved and differences in individual purchase situations, the company needs to verify each case separately.
The company added that suspected legal violations have been submitted to regulatory and judicial authorities and will be handled according to relevant procedures.
IM Motors said its special task force is accelerating data collection and will continue to follow up on customer requests.
Founded in 2020, IM Motors was jointly established by SAIC Motor, Alibaba and other partners.
The brand initially adopted a direct-sales model before gradually opening its network to authorized dealers. Its current sales system is now primarily based on dealership operations.
The expansion of its dealer network has supported sales growth. From January to June this year, IM Motors delivered a total of 40,087 vehicles, up 58% year on year.
However, profitability remains under pressure despite higher deliveries.
SAIC Motor’s 2025 annual report showed that IM Motors generated revenue of RMB 15.411 billion ($2.27 billion) during the year, while posting a net loss of RMB 3.598 billion ($530 million).
Meanwhile, dealerships across China’s new energy vehicle sector are facing increasing operational pressure amid intensifying market competition.
Data from CADA showed that the vehicle inventory alert (VIA) index reached 57.2% in June 2026, remaining above the industry boom-bust threshold.
Higher inventories, price inversions between wholesale and retail channels, and declining showroom traffic have increased financial pressure on some dealers, making single-store operations increasingly challenging.
The recent operational problems reported at multiple IM Motors dealerships highlight the broader challenges facing EV retailers under mounting pressure.
IM Motors said it will further improve dealer qualification reviews, daily management and risk monitoring mechanisms to prevent similar incidents from occurring again.
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