Manufacturing expected to recommence for Neta
Neta Auto Resumes Production After Bankruptcy Reorganization
Neta Auto, a Chinese electric vehicle (EV) maker, has officially resumed production operations in China as of July 2025, following a bankruptcy reorganization initiated in June 2025 due to severe financial distress. The company is now in the recovery phase, aiming to stabilize operations and secure its future.
The restructuring is led by Neta's parent company, Hozon New Energy. To facilitate this process, Hozon has opened an investor recruitment channel on an asset trading platform under Alibaba and begun accepting pre-registration materials on July 10. As of now, 47 investors have expressed interest and must submit deposits by September 2025 to confirm serious participation in the restructuring.
The bankruptcy reorganization covers Hozon New Energy's Chinese operations only, with overseas subsidiaries reportedly maintaining normal business and cooperating with the reorganization administrators to ensure continuity during the restructuring process.
Neta's financial and operational context leading up to the reorganization was challenging. The company experienced a significant decline in vehicle sales, with figures dropping from 152,000 units in 2022 to 64,549 in 2024. This decline led to production suspensions due to supplier payment defaults, including from major partners like CATL. Cumulative losses exceeded CNY 18.3 billion (~USD 2.5 billion) and cash reserves were extremely limited by early 2025.
Ownership tensions and calls for structural reform from state-owned shareholders regarding debt levels and management strategy also plagued the company. Despite these challenges, Neta has substantial assets remaining, including land, production equipment, and intellectual property.
Prior to the resumption of production, Neta employees had only received the minimum basic monthly wage of over RMB 2,000 yuan ($280), with some employees receiving only 50 percent of their normal monthly wages. However, the resumption of production at Neta's factory in Tongxiang, Zhejiang province, is indicated by employees receiving their full July salaries.
Neta reached a debt-for-equity swap agreement worth over RMB 2 billion with 134 domestic core suppliers in March 25. The company is also communicating with stores willing to continue serving the brand to provide material and financial support.
Current Neta employees are busy cleaning, organizing materials, and testing equipment to prepare for full-scale production. The resumption of production by Neta Auto is still underway, despite the setbacks faced in its financial restructuring.
[1] Jiemian News, July 2025, Neta Auto Resumes Production After Bankruptcy Reorganization. [2] 21jingji, June 2025, Neta Auto Files for Bankruptcy. [3] Sina Auto, July 2025, Neta Auto to Restart Production Following Bankruptcy Reorganization. [4] Sina Auto, March 25, 2025, Neta Auto Reaches Debt-for-Equity Swap Agreement with Suppliers. [5] Jiemian News, July 2025, Neta Auto's Overseas Subsidiaries Maintain Normal Business During Reorganization.
- Neta Auto, after the bankruptcy reorganization, is aiming to boost production of its electric vehicles (EVs) and secure its future in the business and technology sector.
- As part of the restructuring process, Hozon New Energy, Neta Auto's parent company, has opened an investor recruitment channel on an asset trading platform, inviting investment to aid the EV maker's recovery.
- Although Neta Auto faced significant financial distress previously, the company still owns substantial assets, including land, production equipment, and intellectual property.
- In collaboration with stores willing to serve the brand, Neta Auto is communicating and seeking material and financial support to continue its delivery of electric cars, helping contribute to an eco-friendly lifestyle.
- The resumption of production at Neta Auto's factory is not only a win for the company but also a demonstration of the technology industry's potential to overcome challenges and drive innovation in electric-vehicle manufacturing.
