On July 21, IM Motors released a statement to clarify the recent irregularities in the operations of its dealers in the Kunming region. On July 7, Yunnan Kunming Zhihueyuexing Automobile Sales and Service Co., Ltd.—one of IM Motors' two dealers in Kunming—faced a capital chain rupture owing to private lending issues. This led to a situation where certain customers were unable to secure vehicle qualification certificates necessary for registration, consequently disrupting the normal delivery of vehicles. Simultaneously, the vehicle delivery process in the Zhuhai area, managed by its affiliated entity Zhuhai Zhihueyuexing Automobile Sales and Service Co., Ltd., was also impacted.

Upon the occurrence of the incident, IM Motors promptly assembled a dedicated task force and dispatched it to the site the following day. The team actively collaborated with the local government and coordinated with all relevant stakeholders to ensure continued support and services for affected customers. By July 17, IM Motors had largely concluded its outreach efforts to customers and clarified the situation. Starting from July 18, the company has recommenced the issuance of qualification certificates and resumed vehicle deliveries. It is anticipated that all orders and deliveries for customers who purchased vehicles under normal circumstances will be finalized by the end of this week.