Neta Auto, a subsidiary of Hozon Auto, a Chinese electric vehicle (EV) manufacturer, is currently facing operational challenges. Reports indicate that Neta has initiated significant layoffs, with some insiders suggesting that the percentage could be as high as 70 percent. However, another source mentioned that the layoffs vary by department and are not as drastic overall.
The company is said to be undergoing organizational restructuring, although the exact percentage of layoffs remains undisclosed. Neta recently implemented an all-employee equity incentive plan on October 29, with a focus on streamlining teams, enhancing business focus, and reducing costs through management restructuring.
Established in October 2014, Hozon received approval from China’s National Development and Reform Commission (NDRC) in April 2017 for its automobile production qualifications. Under the Neta brand, the company offers a range of models including Neta X, Neta GT, Neta S, Neta Aya, and Neta L, targeting a price range between RMB 100,000 to RMB 200,000.
In June of this year, Hozon filed for a listing on the Hong Kong stock exchange, but there have been no updates since then. According to the company’s prospectus, Neta has accumulated losses of RMB 18.38 billion from 2021 to 2023, with negative gross margins in the same period.
Neta’s monthly vehicle deliveries have been lower this year compared to the previous year, except for January and July. In September, the company delivered 10,118 vehicles, a 23.41 percent decrease year-on-year. From January to September, Neta delivered a total of 85,908 vehicles, marking a 12.13 percent decline compared to the same period last year.
Despite the challenges, Neta continues to strive for success in the competitive EV market. The company’s efforts to restructure and optimize operations reflect its commitment to long-term sustainability and growth. As the electric vehicle industry evolves, Neta’s resilience and adaptability will be crucial in navigating the changing landscape.
