Neta’s financial troubles are well known within the automotive industry. Adding to the ongoing challenges, Zhejiang Hozon New Energy Automobile – the parent company of the Chinese EV maker – officially entered bankruptcy proceedings last Thursday (19 June). The news was reported by China’s state broadcaster CCTV the following day (20 June).
According to the National Enterprise Bankruptcy Disclosure platform, the bankruptcy was initiated by a creditor last month. In addition, several of Neta’s showrooms in Shanghai have reportedly closed, further reflecting the company’s unstable position.
As if that weren’t enough, on 13 June, Shanghai Yuxing Advertising Co filed a separate bankruptcy petition against Hozon due to unpaid fees related to exhibition printing. The court has accepted the case and appointed an administrator to oversee the restructuring process.
In parallel, a video surfaced online last week showing employees confronting Neta’s chairman, Fang Yunzhou, over overdue wages at the company’s Shanghai office. This prompted Neta to issue a public statement via its social media platform, confirming that it had initiated reorganisation proceedings.
The company described the move as a government-led initiative, aimed at attracting strategic investors, overhauling management, and restarting production, R&D, and international expansion. However, with the parent company now officially in bankruptcy, serious questions have arisen regarding Neta’s future, both globally and in Malaysia. In response to our enquiry, a Neta spokesperson directed us to the a statement that was released on 4 June 2025, which we’ve covered previously.
To recap, the statement mentioned that Intro Synergy Sdn Bhd, the exclusive distributor of NETA vehicles in Malaysia will be restrategising its operations in Malaysia as a proactive measure. “This includes a shift towards a leaner, more efficient sales model transitioning from a traditional dealership network to a direct-to consumer approach, similar to that adopted by other leading EV brands,” the company stated.
Furthermore, the statement noted that locally the services will operate as usual. As for further updates, it appears we will have to wait and see how the situation unfolds.
(Source: Reuters / The Nation)
