Neta, the New Energy Vehicle (NEV) brand under Hozon Auto, is grappling with significant challenges as it halts production at its Zhejiang factory and implements salary cuts amid declining sales in China.
Founded in 2018, Neta quickly established itself as a competitor in the electric vehicle market, producing affordable models such as the Neta V.
In 2022, the brand surpassed rivals like Li Auto and Nio, achieving over 150,000 car sales.
However, its recent strategy to launch higher-priced, technologically advanced models has not yielded the anticipated results.
From January to September 2024, Neta managed to deliver only 53,853 units—less than 30% of its annual sales target.
Reports indicate a dismal October, with an estimated 4,500 units sold, marking a 40% drop from September. Industry insiders point to delivery issues with the Neta S Hunting model, exacerbated by supply chain problems and customer feedback flooding CEO Zhang Yong’s social media pages.
Adding to its woes, the Tongxiang factory, responsible for a planned production of 200,000 units, suspended operations for half of October, leading to financial strains that resulted in salary cuts of up to 30% for high-ranking employees.
Meanwhile, revelations of late salary payments have raised concerns among the workforce.
Despite these challenges, Neta is setting its sights on international markets as a potential lifeline.
Recently, the brand announced a partnership with Moja EV Kenya to introduce the Neta V to the Kenyan market at KSh 4 million.
Described as ideal for local consumers, the vehicle offers a range of 380 kilometers on a full charge, promising operational cost savings.
