Zotye’s Sub-Brand Traum Is About to Go Bankrupt, Traum was Once the High-End Brand of Zotye

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Recently, according to employees from Traum Auto (“君马”, Chinese spelling “Junma”), a sub-brand of Zotye, Traum Auto “has gone bankrupt”, all senior staff left, and the dealers are in an unmanned state. The company still owes employees four months of unpaid wages, involving 210 employees. At present, Traum’s Xiangyang production base has been completely dissolved, the production land or will be returned to the government.


Zotye's Sub-Brand Traum Is About to Go Bankrupt, Traum was Once the High-End Brand of Zotye

Just a month ago, more than 100 Traum car dealers had assembled the Zotye Automobile headquarter in Zhejiang Yongkang to defend their rights. Regarding the above news, Zotye said that there is no information to respond at present.

Zotye Group owns many sub-brands, including Zotye, Hangteng, Traum, Hanlong, etc. The actual controlling person behind it is the family network relationship. Traum Auto is an independently operated automobile brand released by Zotye Group. It was released on June 27, 2017 in Xiong’an, Hebei Province, positioned as a vehicle brand for young people. Traum Auto adopts “TRAUM” as its badge, It planed to develop fuel vehicles first, focusing on SUV and sedan, and gradually promoting new energy vehicles.

According to the original plan, Traum Auto planed to launch 9 new models within three years, including 8 SUVs and 1 sedan. At present, there are three models listed, including Traum S70, MEET 3 and SEEK 5, and the product price range is 77,900-128,900 yuan in China market.

Zotye's Sub-Brand Traum Is About to Go Bankrupt, Traum was Once the High-End Brand of Zotye
Traum MEET 3

In the first half of 2019, the sales volume of Traum Auto was 30,154 units, the average monthly sales volume was around 5,000 units. In the first half of 2018, Traum Auto sold 8041 vehicles, the annual sales volume was only 21,521. In terms of sales volume alone, Traum Auto has experienced a significant increase over the same period last year.

Although the sales volume is gradually rising, Traum Auto is on the verge of bankruptcy. This shows from the side that China’s auto market is facing increasing competition pressure. From the sales in January-July this year, China’s auto market fell by 11.4%, and the momentum of the decline did not show signs of easing.

At the time of the birth of the Traum brand, another voice believed that Zotye wanted to use the “high-end” image of Traum to get rid of the “low-end” and “ripoff” labels that have been looming over the brand. Nowadays, Traum’s “a flash in the pan” has turned all the good wishes into a bubble.