In line with a Might 12 report from Kuai Know-how, Toyota is reportedly evaluating the acquisition of struggling Chinese language EV maker Neta Auto. Though unconfirmed, such a transfer may assist Toyota strengthen its EV technique in China whereas providing Neta a monetary lifeline.
Neta Auto, based in 2014 by Hozon New Power Auto, has been in disaster since mid-2024. Manufacturing was halted, mass layoffs adopted, and the corporate scrambled for exterior funding. On February 10, 2025, Neta disclosed a failed E-round financing plan involving 4–4.5 billion yuan (552–621 million USD). The lead investor, backed by a BRICS nation fund, pledged 3 billion yuan (414 million USD), however the funding was contingent on resuming manufacturing and securing matching investments—neither of which materialised.
Though Neta’s Tongxiang manufacturing facility briefly reopened in early January, manufacturing by no means resumed because of a extreme components scarcity. This failure led the investor to withdraw, successfully collapsing the deal.
Neta’s valuation took a dramatic hit. In 2023, a 1.53 billion yuan (211 million USD) funding by a Tongxiang authorities entity valued the corporate at 42.3 billion yuan (5.8 billion USD). By 2025, a proposed 50% stake for simply 3 billion yuan (414 million USD) slashed its valuation to six billion yuan (828 million USD)—an 80% drop. This angered early and state-backed buyers, together with 360 Safety Know-how, whose founder, Zhou Hongyi, pulled a pledged 138 million USD follow-up funding. Confidence in Neta’s administration has since deteriorated.
Financially, Neta has posted cumulative losses of 18.3 billion yuan (2.53 billion USD) over three years and owes suppliers 6 billion yuan (USD 828 million). The corporate proposed changing 70% of provider money owed into fairness and paying the remainder in instalments, warning it could default on wages and social insurance coverage with out new capital. If Neta goes bankrupt, authorities buyers will likely be prioritised in debt reimbursement, leaving suppliers in danger.
Compounding its troubles, Neta may face penalties in Thailand, the place it beforehand acquired as much as 150,000 baht (4,100 USD) per automobile in subsidies. To retain these, Neta should meet native manufacturing targets by 2025—failing to take action may set off reimbursement of subsidies, curiosity, and tax breaks.
Regardless of the turmoil, Neta retains some technological and market worth. On March 26, it secured a 2-billion-yuan (276 million USD) debt-for-equity settlement with 134 key suppliers and acquired monetary backing from Thai establishments and Hong Kong’s Solotech.
If a deal proceeds, Toyota may leverage Neta’s belongings and native data to speed up its EV rollout in China. Nevertheless, Toyota China’s Model Communications Director, Xu Yiming, denied the rumours: “We haven’t heard something about this!”
In 2024, Neta’s gross sales fell to 64,500 items, and in January 2025, gross sales plunged almost 98% year-on-year to simply 110 automobiles. The corporate has additionally confronted criticism over outdated expertise and exaggerated efficiency claims. A viral video confirmed founder Fang Yunzhou bowing in apology to suppliers and sellers—highlighting the depth of the disaster.
Supply: IT-House
