Whilst Germany was prohibited from military aircraft manufacture by the Treaty of Versailles, Gotha returned to its railway endeavours, but returned to aviation with the rise of the Nazi government and the abandonment of the Treaty's restrictions.
In 1921 the company purchased Automobilwerk Eisenach, thereby entering automobile production and, with the Dixi 3/15 DA-1 playing an important part in expanding the German auto-market to buyers who hitherto would have been motorised, if at all, only as motorcyclists.