NETA's Troubles: Can the Automaker Bounce Back?

Neta Auto, as we had previously reported, is facing significant challenges, including production halts, workforce reductions, and declining sales.

However, CarNewsChina recently reported its founder Fang Yunzhou has expressed optimism about a turnaround happening soon citing increased orders and positive reception at the recent Guangzhou Auto Show.

The company’s Nanning and Tongxiang plants have experienced prolonged production stoppages, with assembly now concentrated only at Tongxiang. Additionally, the workforce has also been reduced from 7,932 to around just 5,000, while salaries in the R&D department have been cut by 5–30%, depending on pay grade.

The company delivered only 53,853 vehicles domestically from Jan to Sept 2024, achieving less than 30% of its annual sales goal. Oct sales, according to some insiders, are estimated at around 4,500 units.

Additionally, Nanning and Yichun plants are also facing challenges with unsold models and legal issues. Despite the Nanning plant resuming operations after financial support from Nanning Industrial Investment, doubts still remain about the company’s sustainability.

Fang emphasized plans to streamline operations, optimize payroll, and achieve positive cash flow by next year. Despite the revelation of these plans, insiders attribute Neta's struggles to poor decision-making, particularly its focus on a niche market instead of the masses.

Now despite struggling in its home market, Neta is expanding internationally, with new plants in Thailand and Indonesia and an upcoming factory in Malaysia.  The Malaysian plant will be operated by NexV Manufacturing Sdn Bhd (NMSB), a joint venture between Careplus Group Berhad and GoAuto Group Sdn Bhd.

Once ready the plant which is located at Rembau, Negeri Sembilan is expected to become Malaysia’s first dedicated New Energy Vehicle (NEV) production and assembly plant.