Investigation
Neta Auto Steps Closer to Bankruptcy Restructuring Amidst Mounting Challenges
Neta Auto, a Chinese electric vehicle manufacturer, is making steady progress through its bankruptcy restructuring process, following its entry into bankruptcy reorganisation proceedings in June 2025. The company's struggles stem from severe cash flow problems, unpaid wages dating back to November 2024, and significant workforce reductions.
However, there is a glimmer of hope on the horizon. Neta Auto resumed full salary payments at its Tongxiang manufacturing plant in July 2025, signalling initial operational recovery efforts. This move is considered an important step in the company's recovery process.
The parent company, Hozon New Energy, is actively seeking strategic investors to participate in Neta Auto's restructuring. A public notice was released by the administrator of Hozon New Energy on August 4, 2025, seeking interested parties for Neta Auto's restructuring process. As of now, 47 entities have reportedly submitted expressions of interest. These potential investors are required to submit a deposit of 50 million yuan by 5:00 p.m. on September 15, 2025, as part of the next phase in the restructuring process.
Neta Auto's future depends on successful restructuring, additional investment, and potential governance changes. The company's current activities in Tongxiang are considered an initial phase in recovery efforts. It is worth noting that Hozon's asset portfolio includes approximately 233,345 square meters of industrial land in Tongxiang, Zhejiang, along with integrated production equipment, moulds, transport tools, and testing devices.
The company's woes extend beyond financial issues. Neta Auto's annual vehicle sales declined sharply from 152,000 units in 2022 to 64,549 units in 2024. Unpaid supplier debts exceed 6 billion yuan, while cumulative losses have surpassed 18.3 billion yuan. Internationally, Neta Auto runs CKD-mode plants in Bangkok and Jakarta, with the Thai facility entering operation in 2024.
Despite these setbacks, Neta Auto has begun efforts to reactivate its sales and service network. The company's founder is reportedly facing an exit, adding to the uncertainty surrounding the company's future.
Neta Auto's future will be closely watched as it navigates through this challenging period. The company's success in attracting strategic investors and completing its bankruptcy restructuring by mid-September 2025 will be crucial in determining its long-term viability.
- Neta Auto's parent company, Hozon New Energy, is actively seeking strategic investors for the restructuring of Neta Auto, which could potentially boost the company's financial resources for future operations, comparable to an investment in sports teams seeking rejuvenation and growth.
- The resurgence of Neta Auto's sports-like comeback could be palpable through its operational recovery efforts, such as the resumption of full salary payments and the expansion of its sales and service network, mirroring the significant strides made by troubled sports franchises upon securing adequate financial backing and restructuring.
