Each firms have formally debunked latest rumours of Toyota buying Chinese language electrical automobile startup Neta Auto, whereas new court docket filings recommend the EV maker may as a substitute be heading towards chapter proceedings after months of monetary struggles.
Toyota firmly denies acquisition rumours
Toyota China has explicitly rejected hypothesis a few potential takeover of Neta Auto. Xu Yiming, Head of Model Communication at Toyota Motor (China) Funding Co., Ltd., responded clearly when contacted: “Now we have by no means heard of this matter and ask for assist in clarifying this hearsay.”
Further media shops that contacted Neta Auto report that the corporate has equally confirmed that these acquisition rumors are false.
In March 2025, quite a few suppliers visited Neta Auto’s Shanghai headquarters searching for fee options, prompting the corporate to organise a provider convention targeted on debt restructuring. On March 25, Neta introduced it had reached debt-to-equity agreements with 134 core suppliers totalling over 2 billion yuan (285 million USD). This plan acquired optimistic responses from main suppliers, together with CATL, Gotion Excessive-Tech, and others.
Failed financing efforts
Neta has been actively searching for new funding to deal with its operational difficulties. On January 24, 2025, the corporate held a shareholder communication assembly to debate its Sequence E financing spherical. It plans to lift roughly 4-4.5 billion yuan (570-640 million USD), with the lead investor contributing about 3 billion yuan (430 million USD).
In response to the corporate’s roadmap, after resolving debt points, the lead investor’s 3 billion yuan was scheduled to reach in April, primarily to revive manufacturing and fund future growth absolutely. Nevertheless, sources inside Neta Auto verify that as of mid-Might, these funds have nonetheless not materialised.
A chapter case was filed towards Neta’s guardian firm
Within the newest growth, court docket data from Might 13, 2025, reveal that Hozon New Vitality Vehicle Co., Ltd.—Neta Auto’s guardian firm—is now dealing with a chapter evaluate case. In response to the “Nationwide Enterprise Chapter Data Disclosure Platform“, Shanghai Yuxing Promoting Co., Ltd. filed the case and is being processed by the Intermediate Folks’s Courtroom of Jiaxing Metropolis in Zhejiang Province.
China’s chapter reorganisation course of
Underneath Chinese language chapter regulation, the method usually begins with a pre-reorganisation software or a proper chapter submitting. As soon as a creditor information for chapter liquidation, the court docket should notify the debtor firm inside 5 days.
The debtor then has seven days to lift any objections to the submitting. If reorganisation proceeds, the debtor or appointed administrator should submit a draft of the reorganisation plan to the court docket and the creditor conferences inside six months of the court docket’s ruling to provoke the reorganisation.
