Neta Exits Singapore - A Sign of Deeper Trouble Ahead?

Chinese electric vehicle (EV) brand Neta may have just pulled out of the Singapore market, and it does in less than three months after launching with significant fanfare, according to reports by The Business Times and AutoApp Singapore.

The brand's showroom at One Commonwealth, once seen as a key step in Neta’s international expansion, appears to have shuttered its doors. While no official statement has been made, the closure suggests the brand's local presence may have quietly ended.

Neta entered Singapore with high hopes. During the 2025 Singapore Motorshow, it unveiled the Neta X and Neta Aya at Suntec City, targeting value-conscious EV buyers in a growing market.

However, according to AutoApp Singapore, only four Neta vehicles have been registered locally — two even before the official launch in Jan 2025, and two more that same month. Since then, there’s been no sign of customer deliveries. It’s believed all four cars may have been demo units owned by local distributor Evology Automobile.

Evology, incorporated in June 2024, was tasked with handling Neta’s sales and support in Singapore. Just under a year later, it appears that the partnership has stalled, leaving behind a near-empty showroom and growing speculation.

As The Business Times reported, Neta’s parent company — Shanghai-based Hozon New Energy Automobile — is facing severe financial strain. Between 2021 and 2023, the company racked up losses of RMB17.2 billion (RM11 billion), a figure that raises serious questions about its long-term viability.

We reported previously that a planned Series E round aimed to raise RMB4-4.5 billion (RM2.5-2.7 billion), with a key investor expected to contribute RMB3 billion (RM1.8 billion), but these funds have yet to materialize.

Production at its Zhejiang factory was halted late last year. In Jan 2025, Neta’s sales dropped 98% year-on-year. Employee salaries were slashed, and debts to suppliers piled up.

Despite the group constantly denying reports of financial distress, news of a THB10 billion (RM1.1 billion) credit line extended from Thailand underscored its struggles, though it also offered a glimmer of hope.

Despite these challenges in its home market, Neta Auto founder Fang Yunzhou maintains that the strategy is to focus on overseas markets and higher-margin products. The goal is to achieve positive gross margins by 2025 and profitability by 2026.

Neta is performing significantly better in Thailand, having shifted 7,969 vehicles. In Malaysia, however, it only registered 271 EVs in 2024 and just 16 in the first two months of 2025.

Neta’s struggles reflect a broader pattern in China’s oversaturated EV market, where dozens of brands are competing for survival. Once positioned as an affordable EV option, Neta’s shift toward the premium segment proves to be an ambitious move that puts it head-to-head with giants like BYD.

While there has been no official confirmation from Neta or Evology regarding the closure, a quick Google search for “Neta Auto Singapore” indicates that its sole facility at One Commonwealth is "Permanently Closed," fueling strong speculation that Neta’s time in Singapore is already over.

In light of this, the question now is how Malaysia’s expansion plans are progressing—especially in relation to the overdue CKD plans, which have yet to materialise.