Does Neta have financial problems?

Chinese media believe that the manufacturer’s social media activities (or lack thereof) indicate that Neta is in trouble. Although he was previously very active on social media, Neta CEO Zhang Yong has not posted anything since 14 October. His Weibo and TikTok accounts have not been updated for more than 20 days.

Much more alarming than the CEO’s social media abstinence are the reports about the halted production and that Neta has not yet published any sales figures for October – which it usually did on the first day of the following month. However, Car News China quotes industry insiders as saying that Neta delivered around 4,500 vehicles in October – 40 per cent less than in September.

2024 has not exactly been booming for Neta so far either – the brand offers battery electric cars and vehicles with range extenders (EREV). Between January and September, Neta delivered 53,853 vehicles in China – so it is unlikely to reach even half of its annual target of 200,000 vehicles. The latest model, the Neta S Hunting estate, is said to have already experienced delivery problems, with one trim level affected in particular.

In addition, DoNews reports that production at Neta’s factory in Tongxiang (Zhejiang province) has come to a halt for several weeks. The factory primarily produces the Neta L electric SUV. According to employees, the carmaker has already cut salaries this year, and some payments have been delayed. The company is also said to be in debt to suppliers.

So, there seems to be more than just one problem at Neta. The losses at parent company Hozon Auto are also adding up; Hozon has been in the red for three years in a row – in 2022 and 2023 with more than 900 million dollars each. That is why it is currently uncertain whether Hozon will inject money into Neta.

carnewschina.com, donews.com (in Chinese)