Us dealers will suspend plans to import cars from China's zotye until the latter's financial position in its home market improves.

    California-based dealer HAAH Automotive Holdings will suspend plans to import cars from China's zotye until the company's financial position in its home market improves, Automotive news reported on its website.

    HAAH will now focus on its second Chinese partner, chery, CEO duke hale told automotive news.In February, HAAH announced plans to sell chinese-made crossovers under the new Vantas brand, designed by chery, in the United States.

    U.S. dealers who sign up to sell zotye in the U.S. can keep their franchises without having to pay additional Vantas fees, he said.

    The decision marks the latest blow to Chinese carmakers' efforts to build brands in the us since the start of the decade.

    Zotye, HAAH's first Chinese car brand to be introduced to the United States, originally planned to launch a lower-priced crossover in late 2019 or early 2020, but plans have been pushed back to 2021.HAAH, based in irvine, calif., said it had signed up zotye dealers in 100 U.S. markets by the end of last year.

    Duke hale noted that sales of zotye, a novel coronavirus pandemic, have fallen sharply in China over the past few months.

    "Zotye's growth in China has been hit hard," he said on Monday, explaining the shift in business plans.He estimates the drop in sales could be as high as 70 to 80 percent.

    "They have to focus on the domestic market to turn things around," he added.

    In particular, duke hale said HAAH could resume its cooperation with zotye in the United States in the future, possibly in the next two to three years.

    "We are still good friends of zotye," he told reporters.We are still working with them, for example in the central American market we will work with them.We have a long-term agreement with zotye to bring their cars to the U.S. market, provided it makes sense to do so."

    But he also noted that it currently costs millions of dollars to certify zotye's sales in the United States.

    "It doesn't make much sense to tell them how many dollars we're going to spend to certify the first and second models, given their current situation," he said.Hopefully things will get better."

    Zotye's sales fell sharply in the first half of last year, with a net loss of $38m, and deliveries fell to 73,900 units, about half the amount it sold in the same period last year, according to China automotive news.

    Zotye shares traded on the shenzhen stock exchange this week at about 1.9 yuan a share, up from 4.6 yuan a share in the same period last year, according to Reuters.