Chinese electric vehicle manufacturer Zhejiang Hozon New Energy Automobile Company, the owner of the Neta Auto brand, has officially declared bankruptcy, as reported by local sources. The company’s financial struggles led to a creditor, Shanghai Yuxing Advertising Company, filing a petition for bankruptcy review. The court ruled in favor of the petition, appointing an administrator to oversee the restructuring process to rehabilitate the business.
Hozon had been cutting operating costs for more than a year, but it was not enough to offset declining sales in both the domestic and international markets. The company had plans for a Series-E fundraising round this year to raise additional funds, but the efforts did not materialize in time. Recent reports indicate that several Hozon-Neta sales outlets in Shanghai have already ceased operations.
The downfall of Hozon is a significant casualty of the fierce price war that has engulfed China’s new energy vehicle (NEV) market in the last two years. The market is increasingly dominated by major players like BYD and Geely, making it challenging for smaller companies to compete.
As Hozon navigates through bankruptcy proceedings, the industry continues to evolve, with established players consolidating their positions and new challenges emerging. The future of the NEV market in China remains uncertain, but the bankruptcy of Hozon serves as a cautionary tale for companies operating in this highly competitive sector.
The Just Auto Excellence Awards are currently open for nominations, honoring innovation, leadership, and impact in the automotive industry. This prestigious program recognizes achievements, highlights industry advancements, and offers global recognition to deserving candidates. Don’t miss the opportunity to showcase your accomplishments and be acknowledged among the industry’s best. Submit your nomination today for a chance to be recognized at the Just Auto Excellence Awards.
