My Fate is Duo: Nezha and Zotye Make a Comeback | Auto-First Observation

Auto-First｜Samar

September 10, Apple released the foldable screen phone iPhone Duo.

In an instant, "Duo" topped the hot search, and Nissan, Toyota Prado in the automotive circle followed, all creative and full of fun. However, the most interesting part is that Zotye Auto and Nezha Auto, which had disappeared from the public eye for a long time, also announced their rebirth almost simultaneously. One announced a new car entering the trial production stage, and the other secured 3 billion yuan in restructuring funds.

On September 9, Zotye Auto announced that the new A0-class pure electric model Wink Y01 International Edition entered the mass production trial stage. Once the news broke, the company's stock price deviated by a cumulative total of more than 20% for two consecutive trading days, triggering an announcement of abnormal trading fluctuation.

The bankruptcy reorganization of Nezha Auto also saw new developments recently. On September 11, the fourth creditors' meeting for the bankruptcy reorganization case of Nezha Auto's parent company Hozon New Energy was held online. The draft restructuring plan shows that Zhejiang Taiyi Shenglian Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as Taiyi Shenglian) intends to contribute 3 billion yuan to take control, exchanging for about 70.62% of Hozon New Energy's equity.

Coming back together, staging a real-life version of "My Fate is DuoDuoDuo"......

Reading this, the emotions are somewhat complex for a moment. Building cars is no longer a good business. Compared to battery supplier CATL, compared to the trends of this era such as AI, robots, and a bunch of companies standing in the "light", car building seems so outdated, remaining only simple. Apart from a few individual companies, profits are left only as a longing.

Even so, Nezha Auto and Zotye Auto are going to be reborn gloriously, walk the Jianghu again, and ask, "Do you know how I lived these few years?" According to recent slang, these two companies are really bold.

Whether Nezha Auto or Zotye Auto, at least, considering the issues of three levels.

Revival at this time, things are no longer the same as before

Should we be on alert? Who should be on alert

A more realistic answer lies overseas

Regarding the first question, Zotye and Nezha chose to return in the autumn of 2026, but the table is accelerating narrowing.

In the first seven months of 2026, the new force camps have completed structural stratification. 100,000 units became the threshold for the top, and 30,000 units is the increasingly clear survival line. Leapmotor's monthly deliveries broke through 100,000 units. HarmonyOS Intelligent, "Nio, Xpeng, Li Auto, Xiaomi" faced each other in the 30,000 to 45,000 unit range.

The big autonomous fish like BYD and Geely are even more attacking and conquering in the new energy market. Nio's Li Bin stated directly that the main market players for the next 3 to 5 years will be basically determined. The recent two years are a critical period for automakers to see if they can stay on the table.

How are the bottom cards of these two companies exactly? Zotye's situation is particularly worth reviewing. Net profit attributable to the parent company in the first half was 80.38 million yuan, seemingly turning a profit, but net profit after deducting non-recurring items was -152 million yuan, with the loss expanding 40.31% year-on-year. The profit source is a 200 million yuan compensation from cancelling subsidiaries and 30 million yuan revenue from lawsuit settlements. In simple terms, it was "earned" by selling assets and lawsuits, having nothing to do with car building. The whole vehicle business has not yet contributed revenue. The company is essentially still a "Parts + Doors" company.

Nezha's situation isn't much better. Hozon New Energy's cumulative net loss is 18.3 billion yuan. In January 2025, single-month sales plummeted to 110 vehicles, and three major domestic production bases stopped all production. Of the 3 billion yuan restructuring funds, 1.167 billion yuan was used to settle claims, and the actual working capital available for resuming production was only 1.833 billion yuan. And its first stage production resumption target is only annual sales of 10,000 vehicles.

Who should be alert?

On the surface, the revival of Zotye and Nezha is the "return of old friends", but in fact, standing behind this round of restructuring are new players.

Nezha's acquirer Taiyi Shenglian, registered and established in April 2026, was formed as a partnership by two companies controlled by Shanzi Technologies Chairman Ye Ji and the Chairman's Office Head Yu Shuxin. Shanzi Tech's predecessor was the old real estate firm Yinyi Shares. It entered the automotive track by acquiring overseas automotive parts companies in 2016. In 2023, it acquired Xingtai Longgang to obtain car manufacturing qualifications. The first mass-produced model rolled off the line in 2024, and it also revitalized Yunfeng Auto produced by the former Hafei Auto factory for export to Russia.

In other words, what is truly worth paying attention to is not whether Nezha as a brand can survive, but what game Shanzi Tech is playing. From parts to whole vehicle manufacturing, from domestic qualifications to the Russian export channel, Ye Ji's layout has covered multiple links in the automotive industry chain. The value of Nezha Auto may not lie in the two words "Nezha", but in the two car-making qualifications in Hozon New Energy's hands and the Tongxiang production base.

The revival paths of both car companies point in the same direction: overseas.

Zotye positions 2026 as the "Overseas First" development year, focusing on layout in Africa, Southeast Asia, Central and South America, and South Asian markets. India is the most concrete direction currently being promoted. Kaly Emotors has signed the main agreement for the KD cooperation project, planning an SKD loose parts assembly project with an annual output of 30,000 sets. This model has light asset investment, flexible exit, and can avoid India's high automotive import tariffs.

Nezha's three-stage plan is also centered on overseas: The first stage is the production resumption of Nezha X for the overseas market. The second stage focuses on launching models suitable for Asia, Africa, Latin America, etc., with an annual output target of 300,000 units.

Going overseas is indeed a path for these brands to bypass domestic fierce competition. But this path is not easy to walk. Nezha was once successful in the Thai market. In 2023, its pure electric market share in Thailand exceeded 10%. But as the domestic capital chain broke, sales in Thailand plummeted. Cumulative sales in the first half of 2026 were only 365 vehicles. Local consumers' high sensitivity to brand stability means the overseas market is not a haven, but the ultimate test of corporate comprehensive strength.

Zotye's KD model seems light, but since the agreement signing, the partner's project implementation in India is still on pause. Production capacity is planned but no mass production signal is awaited. Many Southeast Asian countries are also tightening import conditions for Chinese electric vehicles, raising the threshold and tax burden for whole vehicle imports, requiring automakers to increase local production and parts procurement.

The overseas market gives these brands not an easy way out, but a window to prove themselves again. The window is small, and there is not much time left. Whether to squeeze in depends on whether funds are available, whether the supply chain can be rebuilt, and whether products can pass the regulatory certification of the target market.

Auto-First Observation: Revival is not difficult, the difficulty is living differently this time

Whether Zotye and Nezha can turn "Duo"'s extra fate into their true second life, the market will vote with its feet.