Zoyte Names First U.S. Dealers

The initial group of U.S. franchised dealers for Zotye Automobile International Co. have been named as part of the Chinese carmaker’s plans to launch sales in the market by the end of 2020.

Zoyte plans to launch sales of a low-cost crossover vehicle in the U.S. by the end of next year. The company aims to have as many as 325 sales points in 80 top U.S. markets by that time.

Last autumn, Zotye selected HAAH Automotive Holdings as its distribution partner in the U.S. HAAH’s Zoyte USA unit has signed 10 dealer groups that plan to open 19 stores in 10 states—California, Florida, Indiana, Kansas, Maryland, Nevada, North Carolina, Oklahoma, Pennsylvania, Virginia—and Washington, D.C.

The dealers currently operate a mix of Buick-GMC, Chevrolet, Ford-Lincoln, Honda, Hyundai, Lexus, Subaru and Volvo outlets. HAAH expects to announce the next wave of Zotye franchises in March.

HAAH says the Zoyte vehicles could be priced 20% lower than rival models in the U.S. The plan calls for a “no-haggle” price without back-and-forth negotiating. Buyers also will be able to shop and complete their purchases online, according to the company.

The first Zoyte vehicle in the U.S. is expected to be an updated version of the T600 crossover, which bowed in China in 2013. That model sells in China for $11,700-$20,200.

Zotye announced the new dealers on Saturday at the National Automobile Dealers Assn. meetings in San Francisco. The company previously has said it will keep the 2020 target regardless of whether the U.S. is imposing a 25% import tax on vehicles from China by then.

Rival Chinese carmaker Guangzhou Automobile Group also met with prospective dealers at NADA. That company has delayed its timetable for beginning sales in the American market because of the simmering trade war between China and the U.S.