Neta Auto, once a rising star in China’s electric vehicle market, is reportedly set to initiate bankruptcy restructuring proceedings starting June 12, 2025.
This development comes after a video circulated online on June 11, showing company employees confronting Neta Auto’s Chairman, Mr. Fang Yunzhou, at their new office in Shanghai, demanding unpaid wages.
According to an employee present at the scene, over 100 people gathered, only to be directed to await bankruptcy liquidation. An employee of Neta Auto appearing in the video also confirmed that the company would commence bankruptcy restructuring proceedings the following day – a fact later corroborated by the workers.
This latest incident starkly reflects the string of crises Neta Auto has faced in recent years – from cash flow disruptions, high-level leadership departures, to mounting pressure from suppliers.
Since 2024, Neta Auto has repeatedly faced enforcement actions due to capital difficulties and inability to repay debts. Employees revealed that they have not received wages since November last year – the time when Neta Auto conducted a large-scale reduction, laying off more than 2,900 people, nearly half of its workforce, across various departments.
Despite winning lawsuits, many former employees were unable to claim their wages as the company lacked sufficient assets for seizure. For instance, in March 2025, court orders could only freeze less than 500 Chinese yuan (approximately 70 USD) across two bank accounts of companies affiliated with Neta Auto.
On May 13, Yuxing Advertising Co. filed for bankruptcy against Hozon New Energy, Neta Auto’s parent company, citing outstanding debts of 5.31 million Chinese yuan (approximately 740,000 USD) for advertising services and the company’s failure to honor the agreed repayment. Neta Auto responded that this was a unilateral action by the supplier and that the company had not initiated bankruptcy proceedings, with internal operations continuing as usual.
From Promise to Peril
Once a frontrunner in the emerging electric vehicle wave, Neta Auto’s sales have plummeted: from 152,000 vehicles in 2022 to 127,500 in 2023, and a mere 64,500 in 2024.
By January 2025, domestic deliveries had sunk to just 110 units – a figure that all but pushed the brand out of the mainstream arena.
Source: CarnewsChina
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