Neta Auto is currently undergoing a significant restructuring of its channel system, as reported by local media outlets. The company has announced plans to gradually close down its directly-managed stores while retaining dealer stores in order to streamline operations and reduce costs.
Customers of Neta in various cities have already started receiving notifications about the closure of local directly-managed stores. Cities such as Suzhou and Chongqing are among those affected, with the reason cited being Neta’s adjustment to its business strategy.
In response to inquiries about the closures, Neta has confirmed that it is in the process of restructuring its directly operated stores. Some stores will be shut down while others will continue to operate normally. This move comes as part of the company’s efforts to optimize its channel operations.
According to a former employee of a Neta directly-managed store, the brand is planning to phase out its directly-managed stores in China and focus solely on dealer stores. This shift is aimed at reducing operating costs and improving efficiency in the long run.
Neta’s parent company, Hozon Auto, has faced financial difficulties in recent months, leading to a series of layoffs in November last year. To address these challenges, the company entered into a strategic partnership with Guangxi’s Nanning Industrial Investment Group. This partnership aims to provide financial support for Neta’s supply chain operations, including procurement, production, logistics, and export activities.
Furthermore, Nanning Industrial Investment Group will assist Neta in organizing the production and delivery of its overseas models, as well as expanding its international market presence. This collaboration is expected to help stabilize Neta’s supply chain and support its growth in overseas markets.
Overall, Neta’s decision to restructure its channel system and focus on dealer stores reflects the company’s commitment to overcoming operational challenges and achieving long-term success in the competitive electric vehicle market. By optimizing its operations and strengthening its supply chain, Neta aims to position itself for sustainable growth and expansion in the future.
