Production of Neta set to recommence
Neta Auto Resumes Production as Part of Bankruptcy Reorganisation
Neta Auto, the Chinese electric vehicle manufacturer, has resumed production at its factory in Tongxiang, Zhejiang province, according to local media reports. This comes after the company entered bankruptcy proceedings in June 2025 due to severe financial distress.
The resumption of production is a positive sign of recovery for Neta Auto. Employees have reportedly received their full July salaries, a significant change from the minimum basic monthly wage or less they had been receiving prior to this. Current staff members are busy cleaning, organizing materials, and testing equipment to prepare for full-scale production.
The resumption of production is part of a restructuring effort led by Hozon New Energy, Neta Auto’s parent company. Hozon Auto, established in October 2014, obtained automobile production qualifications in April 2017. Forty-seven potential investors have expressed willingness to provide financial support for Neta's resumption of production, each required to place a deposit of CNY 50 million (around USD 6.9 million) by mid-September 2025 to participate in the restructuring.
However, the road to recovery is not without challenges. A prior debt-for-equity swap plan with suppliers worth over RMB 2 billion failed mid-2025, leaving several hundred million yuan in debt unresolved. This failure complicated the production resumption process.
Moreover, Neta's operations outside China face difficulties. The company is reportedly in deep trouble in Thailand for failing to meet local production targets and payments to parts suppliers despite receiving substantial subsidies.
Despite these challenges, Neta Auto is communicating with stores willing to continue serving the brand to provide material and financial support. The company is also retaining dealer outlets, indicating a commitment to maintaining its presence in the market.
In conclusion, while Neta Auto is still financially distressed and under bankruptcy restructuring, it has recently resumed production and wage payments in China with active investor involvement aimed at recovery. However, challenges remain both domestically and internationally.
[1] Local Media Report: Neta Auto Resumes Production [2] 21jingji Report: Neta Auto Resumes Production [3] 21jingji Report: Neta Downsizing Directly Operated Stores [4] 21jingji Report: Debt-for-Equity Swap Plan Fails [5] Global Times Report: Neta in Trouble in Thailand
- In an effort to increase production, Neta Auto plans to introduce a new line of sports electric vehicles (EVs) to boost sales and appeal to a wider market.
- To expedite the delivery of their new EV models, Neta Auto has secured funding from several investors for the expansion of its production facilities.
