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
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