Chinese language electrical car producer Neta Auto (Hozon New Power Car) is dealing with an escalating disaster as representatives from its dealership community have gathered on the firm’s Tongxiang manufacturing facility to demand cost for undelivered autos and compensation for mounting losses.
In response to social media experiences, greater than twenty representatives from Neta’s nationwide community of over 300 approved sellers assembled on the manufacturing facility gates to voice their grievances. The protest highlights the worsening monetary state of affairs at considered one of China’s once-promising EV startups.
In video footage circulating on-line, vendor representatives said they’ve maintained operations regardless of Neta’s failure to ship autos, implement mass layoffs, halt enterprise operations, and tackle provider debt claims for greater than half a 12 months. The sellers declare they’ve continued regular operations, paid worker salaries and advantages, maintained tax funds, and averted unfavorable publicity whereas ready for Neta to meet its guarantees.
“We believed the producer would honor its commitments, however since final September, the corporate has by no means straight addressed our considerations—not even as soon as,” a consultant mentioned within the video. “We’ve solely heard rumors about upcoming financing, manufacturing resumption, and vendor conferences. Whereas ready and persevering with to speculate, we’ve solely sunk deeper into debt.”
The sellers declare some have paid a whole bunch of thousands and thousands of yuan upfront for autos that had been by no means delivered. Some sellers who took loans to buy stock at the moment are dealing with authorized motion from banks and clients.
The vendor representatives offered three particular calls for: compensation for operational losses from September 2024 to the current plus advance cost for working prices from Might to July 2025; speedy compensation by Might 11 of all excellent rebates and subsidies for pay as you go however undelivered autos; and immediate restoration of the after-sales service system to assist Neta’s roughly 400,000 present clients.
“We don’t need Neta to break down, we simply need accountability,” the representatives said, calling for a direct response from Neta’s Chairman Fang Yunzhou.
Neta Auto has not but responded to those allegations.
The corporate has been in monetary misery since late 2024, with quite a few experiences of layoffs and wage reductions. Founder Fang Yunzhou not too long ago stepped right into a extra lively position, taking over the CEO place whereas retaining his chairman title. Former CEO Zhang Yong, who had been a controversial determine, was reassigned to an advisory position.
Neta’s home gross sales have plummeted dramatically. Knowledge reveals the corporate bought solely 487 autos in January and February 2025 mixed, with no disclosed gross sales figures for March. These numbers fall effectively under these of different Chinese language EV manufacturers which have already declared chapter or exited the market. Present gross sales present minimal demand for its mannequin lineup, with the Neta X accounting for simply 272 models and the NETA L for 149 models throughout this era.
As its house market collapses, NETA is more and more pivoting to worldwide markets, significantly Thailand. The corporate not too long ago introduced it obtained 1,219 orders in the course of the Thailand Motor Present and has set an bold goal of promoting over 10,000 autos in Thailand in 2025, aiming to turn into the second-largest new power car model within the nation.
On the latest auto present, Neta exhibited three fundamental fashions: the entry-level Neta AYA electrical SUV, the family-oriented Neta X, and the Neta S wagon. The corporate was the primary Chinese language EV startup to enter the Thai market in 2022 and has since established native manufacturing capabilities.
In a possible lifeline for the struggling automaker, NETA not too long ago secured a ten billion Thai baht (215 million USD) credit score line in Thailand and plans to start native manufacturing of its international mannequin, the Neta X, in July 2025.
Chairman Fang beforehand said the corporate goals to realize optimistic gross margins by 2025 and total profitability by 2026, with an IPO as its major aim. In response to Neta Co-President Zhang Xiaodong, “Numerous self-rescue measures are being actively and successfully carried out, with vital outcomes from changing provider debt to fairness, which has laid an necessary basis for streamlining operations and higher attracting exterior funding.”
Neta’s state of affairs exemplifies the challenges dealing with China’s crowded EV market, which has seen a number of once-promising startups collapse lately as a consequence of fierce competitors, overcapacity, and scaling difficulties. As established gamers and new entrants proceed to flood the market with new merchandise, smaller corporations like Neta discover themselves more and more squeezed between money stream issues and declining gross sales.
