NETA Auto is navigating turbulent times as rumors of financial instability swirl. The Chinese electric vehicle (EV) manufacturer is now actively seeking new strategic investors to remain competitive amid rising pressure in the global EV market.
The move follows the restructuring of Hozon New Energy Automobile Co., Ltd., NETA Auto’s parent company, which officially entered a court-supervised restructuring process on June 12, 2025, under the Enterprise Bankruptcy Law of the People’s Republic of China.
Despite the parent company’s challenges, NETA’s overseas subsidiaries – including NETA Auto Thailand, NETA Auto Brazil, and NETA Auto Indonesia – remain operational and continue business as usual. These international branches are working closely with NETA Auto Overseas to ensure a smooth, legally compliant transition through the restructuring.
Hozon New Energy is committed to maintaining open and timely communication with all subsidiaries and related partners, to provide the latest information regarding the restructuring process and essential steps to be taken going forward, as explained in the points below:
- Restructuring Scope: Only Applies to Parent Company
Hozon New Energy clarifies that the restructuring process does not include foreign subsidiaries or international partnerships under the NETA Auto brand. These entities operate independently and remain unaffected by the parent company’s legal restructuring.
The company remains committed to maintaining global business continuity throughout this process.
- Strategic Investor Recruitment Begins
To secure its future, Hozon New Energy launched a public call for strategic investors on June 30, 2025. Interested parties have until July 30, 2025, to submit application documents.
Several candidates – especially those offering industrial unity – have already registered and are now undergoing evaluation by the appointed Administrator. Feedback suggests more investors may follow, signaling strong interest in the company’s long-term potential.
III. Preparing for Production Resumption
As part of the recovery strategy, Hozon New Energy aims to:
- Protect the rights of all stakeholders,
- Allocate resources efficiently, and
- Resume production in a market-driven, legally compliant manner.
A detailed plan to restart operations is currently under development, with the Administrator focusing on restoring the company’s value.
IV. After-Sales Service and International Spare Parts Availability
In this regard, Hozon New Energy continues to collaborate with the Administrator to restore the operation of the spare parts center gradually. It is committed to maintaining continuity of after-sales service and ensuring the availability of spare parts for international customers.
- After-Sales Service and Spare Parts Supply
To support its global customers, the company is working with the Administrator to restore spare parts center operations gradually. NETA Auto assures international customers that after-sales service and parts availability will continue uninterrupted.
NETA Auto and Hozon New Energy extend their gratitude to international partners, customers, and stakeholders for their support and patience during this critical time. The company remains focused on long-term growth and is optimistic about finding the right strategic partners to rebuild and expand its global presence.
NETA Auto stays operational globally as its parent company, Hozon New Energy, undergoes restructuring. Investor recruitment is underway to support recovery.
Neta’s global sales, particularly in the electric vehicle market, have fluctuated. In 2023, Neta became the top Chinese electric vehicle startup exporter with 15,913 units.
However, in 2024, Neta’s sales in China reportedly declined, with a 98% year-on-year drop in early 2025.
On the other hand, Neta also managed to record positive sales in several different markets, such as Thailand, where the Neta X achieved 1,000 SPKs within three days of its launch and gained a 22% market share of electric vehicles.
Neta is the number one EV startup in China, having achieved sales of 150,000 units in 2022. However, in 2024, Neta’s sales in China experienced a decline, and even in early 2025, it was reported to have experienced a sharp decline.
