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China’s Neta EV Parent Company Enters Bankruptcy Amid Growing Financial Troubles

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The parent company of Neta has entered bankruptcy proceedings, sending shockwaves through its oversea markets, including Laos and Thailand, including Laos and Thailand where customers and dealerships now face mounting uncertainty over vehicle servicing, spare parts availability, and dealership operations.

On 19 June, Zhejiang Hozon New Energy Automobile, the parent company of Chinese EV brand Neta, officially entered bankruptcy proceedings after a creditor filed a petition over unpaid debt of CNY 5.3 million (USD 730,000), according to the provincial state media outlet Xinhua Daily Media Group, with court documents revealing total liabilities exceeding CNY 10 billion (USD 1.4 billion).

Shanghai Yuxing Advertising submitted a bankruptcy petition against Hozon New Energy Automobile on 13 May. Later on 19 June, the court accepted and announced the start of bankruptcy proceedings.

Screenshot from China’s National Enterprise Bankruptcy Information Disclosure Platform of Hozon Auto being filed for bankruptcy.

The bankruptcy filing represents the culmination of months of mounting financial troubles for Hozon. The company reportedly stopped paying employee wages in late 2024, leading to production halts, mass layoffs, and protests by hundreds of workers demanding overdue salaries. 

Several Neta showrooms in Shanghai have been forced to close permanently as the financial crisis deepened, the report said.

Overseas Market Disruption

The collapse has exerted an impact on foreign markets.

In Thailand, the company’s dealership network has contracted from 60 to 40 outlets, with further closures expected due to liquidity problems, according to The Bangkok Post. Spare parts shortages have caused major delays in insurance claims and car repairs, some lasting up to 10 months.

Despite the challenges, the Facebook page of NETA Auto Thailand, posted a statement on 12 June that the company is undergoing debt restructuring and organizational changes. He reassured stakeholders by stating, “As long as Neta exists in China, it will continue to exist in Thailand.” 

Now that the parent company has entered bankruptcy proceedings, how can customers still trust those assurances?

NETA Auto Thailand, posted a statement on 12 June that the company is undergoing debt restructuring and organizational changes. (photo credit: NETA Auto Thailand)

Meanwhile in Laos, where Neta has gained traction among local consumers. Many Lao customers who purchased Neta vehicles now face uncertainty about ongoing service support, warranty coverage, and parts availability as the parent company navigates the bankruptcy process.

“The parent company’s gone bankrupt, how are we supposed to believe you can still support us?” one commenter wrote under a post published by Neta auto Laos on TikTok .

“If the parent company has shut down, how can Neta still supply spare parts?” another commenter wrote under the same post.

Under Chinese bankruptcy law, Hozon has six months to submit a reorganization plan. The outcome will decide whether the company restructures or faces liquidation, potentially leaving international customers and dealers unsupported.

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