Neta Auto Malaysia Denies Bankruptcy, But Questions Remain

Neta Auto Malaysia (Intro Synergy S/B) has released a statement addressing recent social media reports claiming that its parent company, Hozon Auto, is bankrupt.

The company clarified that these claims are false and stem from a debt dispute with a creditor, YuXing Advertising, which led to a bankruptcy application being filed in court.

Hozon Auto maintains that this is a standard legal process and firmly denies it is going bankrupt. A similar press release was also released by Neta distributor in Thailand.

The Malaysian arm reassures local operations are unaffected. Sales, vehicle deliveries, spare parts availability, and aftersales services are all continuing as usual. Neta Auto Malaysia states it remains focused on serving customers and growing its network as planned.

In China, there were reports that Neta has signed a debt-for-equity swap deal with 134 key suppliers involving over RMB 2 billion (around RM1.3 billion). Further reports indicate 70% of the outstanding payments will be converted into equity in Hozon Auto, while the remaining 30% will be treated as interest-free debt, to be repaid in 15 monthly installments starting May.

The proposal has reportedly gained support from major suppliers including battery manufacturers CATL and Gotion High-tech. Additionally, Neta has announced it secured a THB10 billion (RM1.3 billion) credit line from a Thai financial institution.

Though these efforts indicate the company is actively working to address its financial challenges, nothing has been officially finalised apart from the confirmed bankruptcy filing by the creditor.

Despite these developments, concerns remain in Malaysia. Besides this announcement denying Hozon Auto’s bankruptcy, there has been no update on the company’s CKD plans, which are long overdue. One model was promised for release in Q1 2025, but there has been no progress or communication on this commitment.

There is also growing concern over the lack of response regarding the Neta V’s 0-star ASEAN NCAP crash safety rating which was published in Dec, 2024. Neta Auto Malaysia has yet to comment on the report, raising questions about transparency and accountability in terms of safety for local buyers.

Between Jan and April 2025, Neta Auto Malaysia sold just 50 vehicles, with 37 of them being the ASEAN NCAP 0-Star rated Neta V. The combination of financial uncertainty at the parent level, delayed local expansion plans and silence on safety concerns may begin to erode customer confidence if not addressed soon.

Given mounting concerns, perhaps it’s time Neta Auto Malaysia took a page from the PR playbooks of more established brands - by addressing issues promptly and transparently.