Neta Set to Restart Operations After Restructuring Effort – Report

Neta is reportedly set to restart its operations in China after restructuring efforts from 47 investors.

Neta Auto has reportedly restarted its production operations in China, with CarNewsChina reporting that the automaker has resumed full salary payments at its Tongxiang factory in July 2025. This signals a potential step towards operational recovery for Neta Auto, following a series of financial crises and bankruptcy rumours for the automaker.

According to a public notice released by Neta’s parent company, Hozon New Energy, the firm is currently seeking strategic investors to participate in its restructuring process, where it previously opened a pre-registration channel via Alibaba’s asset disposal platform in China.

To date, 47 investors have reportedly submitted expressions of interest for this restructuring programme, where each party is required to submit a deposit of CNY 50 million (RM29.444 million) by Sept 2025.

Prior to this revelation, Neta Auto officially entered bankruptcy reorganisation proceedings back in June 2025, following months of cash flow problems, unpaid employee wages dating back to Nov 2024, and large-scale layoffs that reduced its workforce by nearly half. Production was also halted due to accumulating debts from suppliers, with reported values exceeding CNY 6 billion (RM3.533 billion).

Following these developments, Neta Auto has reportedly reinstated full wages at its central Tongxiang manufacturing facility. To go along with the production restart, the automaker has also begun efforts to reactivate its sales and service network, providing materials and financial support to outlets that remain willing to collaborate.

Despite these positive developments, staffing levels at Neta’s Tongxiang plant remain limited due to previous layoffs, where remaining employees are reportedly engaged in cleaning the facility, organising supplies, and testing equipment in preparation for a possible production restart.

With these operational and production challenges, as well as the bankruptcy proceedings, Neta Auto annual vehicle sales have declined sharply in recent times. From 152,000 units in 2022, the automaker only managed to deliver 64,549 units in 2024, with cumulative losses now reaching CNY 18.3 billion (RM10.776 billion), CarNewsChina reports.

To make matters worse, tensions have also arisen within the automaker’s ownership structure, with several state-owned shareholders of Hozon New Energy having reportedly advocated for structural reforms. These include leadership changes, with shareholders expressing concern about the company’s debt ratio of over 217% and previous expansion strategies.

While this recovery phase seems like good news for Neta Auto, it is still considered as an initial phase in the automaker’s whole recovery process, as its future still depends on successful restructuring, additional investment, and potential governance changes.

Source: CarNewsChina