Production of Neta set to restart
After months of financial struggles, Neta Auto, a Chinese electric vehicle (EV) maker, has resumed production at its factory in Tongxiang, Zhejiang province. This significant step marks a key milestone in the company's recovery following its bankruptcy reorganisation initiated in June 2025.
The resumption of production operations at Neta's factory is indicated by employees receiving their full July salaries, a positive sign of improving cash flow and operational stability. However, it is important to note that Neta has faced significant financial difficulties in the past few months, including unpaid wages since November 2024, large-scale layoffs, and halted production due to supplier debts exceeding CNY 6 billion (about RM 3.5 billion).
Neta's parent company, Hozon New Energy, is actively seeking strategic investors to support the restructuring efforts. A pre-registration investment channel was opened on Alibaba’s asset disposal platform starting July 2025. So far, 47 to 56 potential investors have expressed interest and submitted deposits of CNY 50 million (~USD 6.9 million) by the mid-September 2025 deadline to participate in the restructuring capital raise.
In addition to production resumption, Neta is working on restoring its sales and service networks. The company is communicating with stores willing to continue serving the brand and providing them with financial and material support to stabilize market presence. Factory employees are busy cleaning, organizing materials, and testing equipment as preparatory steps for ramping up production volume.
The success of the ongoing restructuring, investor participation, and governance changes will largely determine Neta Auto's future viability. The company, which was established in October 2014 and obtained automobile production qualifications in April 2017, is retaining dealer outlets as it works towards a sustainable future.
References:
- Sina Auto
- Jiemian
- China Daily
- Caixin Global
- South China Morning Post
- Neta Auto's resumption of EV production marks a crucial step in its journey towards recovery, following the bankruptcy reorganization in June 2025.
- The company is actively seeking prospective investors to support its restructuring efforts, with 47 to 56 potential investors having shown interest by the mid-September 2025 deadline.
- Neta is not only focusing on the resumption of production but also working diligently to restore its sales and service networks.
- As Neta continues to restructure, the future viability of the company largely depends on the success of these efforts, as well as continued investor participation and governance changes.
