Facts About Toyota's Plan to Acquire Neta

KatadataOTO – Recently, news has spread that Toyota intends to acquire the electric car brand from China, namely Neta. This move is said to be aimed at strengthening their position in the Land of the Bamboo Curtain.

Quoting Carnewschina on Wednesday (14/05), Neta Auto has been experiencing a financial crisis since last year, 2024.

This issue became known due to production stoppages and mass layoffs (Termination of Employment) at this electric four-wheeled vehicle manufacturer.

Nevertheless, Neta Auto has taken various measures to sustain their business in the world of EV (Electric Vehicle).

Photo : Neta

Such as by seeking external investment sources. However, on February 10, 2025, Neta revealed the failure of its E-round funding plan, valued at 552 million to 621 million US dollars (Rp 91 trillion – Rp 10.3 trillion).

The funding was led by an investor backed by funds from one of the BRICS countries (Brazil, Russia, India, China, and South Africa), with a commitment of 3 billion yuan or 414 million US dollars, equivalent to Rp 6.8 trillion.

However, there were conditions that Neta had to meet to secure the investment. Such as the continuation of production and matching funds, but ultimately, these could not be met.

Although Neta's factory in Tongxiang had resumed operations in January 2025, the production of electric cars could not proceed due to a shortage of spare parts.

This situation made investors reluctant to invest their money. Consequently, the deal fell through, and Neta's valuation plummeted drastically.

For your information, Neta Auto has recorded a cumulative loss of 18.3 billion yuan, equivalent to Rp 42.1 trillion, over three years.

Neta is also reported to owe component suppliers 6 billion yuan, equivalent to Rp 13.8 trillion.

Seeing this opportunity, Toyota is reportedly interested in acquiring Neta, which is on the brink of bankruptcy.

If this deal comes to fruition, the Japanese manufacturer could leverage Neta's assets and their knowledge in China. This could accelerate the launch of Toyota's electric cars in China.