Neta, a troubled Chinese car maker, recently secured a substantial investment of 6 billion yuan (equivalent to 818.8 million USD). This infusion of funds allowed the company to address its financial challenges, including the payment of delayed salaries and the resumption of production activities. Looking ahead to 2025, Neta has set ambitious goals to primarily target overseas markets with the aim of doubling its sales volume.
The company faced significant difficulties in 2024, with reports emerging of salary cuts and delayed payments to employees. In November of that year, production at Neta’s Tongxiang manufacturing plant was halted, impacting its annual production capacity of 200,000 units. Amidst these challenges, Neta’s founder and chairman, Fang Yunzhou, assumed the role of CEO in December 2024.
Despite a decline in domestic sales volume towards the end of 2024, Neta remains optimistic about its future prospects. The company reported a year-on-year decrease in sales, with only 237 units sold in December 2024. However, Fang Yunzhou expressed confidence in achieving a positive gross profit margin in 2025 and profitability by 2026.
The recent influx of external investments totaling 6 billion yuan has provided a much-needed lifeline for Neta. While some employees were initially unaware of the financing, the funds have been utilized to stabilize operations. State-owned assets and CATL, the world’s largest battery manufacturer, were reportedly involved in the investment process.
Neta’s partnership with CATL has been a key aspect of its growth strategy. The company was the first to adopt CATL’s Bedrock chassis in January 2023, with the Neta L crossover model showcasing the latest battery technology. As part of internal restructuring efforts, Neta is focusing on enhancing production efficiency and optimizing its dealership network.
Looking ahead, Neta is placing a strong emphasis on expanding its presence in overseas markets. The company recently held its second overseas dealer and investor conference, outlining plans to double sales in 2025. With a target of selling 60,000 vehicles internationally, Neta is strategically shifting its focus to escape the intense competition in the domestic market.
While Neta has made significant strides in establishing sales channels in Southeast Asia and Central and South America, challenges persist at its Thailand plant. Reports indicate a potential reduction in workforce as production slows, signaling ongoing adjustments to align with market dynamics. Overall, Neta’s commitment to overseas expansion and financial stability sets the stage for a transformative journey in the global automotive industry.
