Dixi was the brand name of cars made by Automobilwerk Eisenach (Eisenach car factory) starting in 1904. In the difficult economic climate of the 1920s the company found it hard to sell its 6/24 and 9/40 models. So the manufacturer decided to enter the small car market, and in 1927 signed a licensing agreement with the Austin Motor Company to build a variant of the Austin 7. A production level of 2000 cars a year was agreed upon, and Dixi paid Austin a royalty on each vehicle produced.
