Neta on the Brink of Bankruptcy, Here's the Fate of Sales in Indonesia

KatadataOTO – Neta Auto is rumored to be struggling with financial problems. The brand from China is on the brink of bankruptcy.

Reporting from Carnewschina on Thursday (12/06), Neta has been experiencing financial and operational pressures that have shaken the continuity of their business since last year.

"Neta Auto, once a rising star in the Chinese electric car market, will reportedly begin restructuring," wrote the online media from China.

It was mentioned that the step was taken as an effort to save the company from complete bankruptcy, conducted under court supervision.

Photo : Neta Auto Indonesia

Moreover, a day earlier, a video circulated showing an emotional confrontation between employees and Fang Yungzhuo, Chairman of Neta Auto, at their new office.

The workers claim they have not received their salaries since last November 2024. The timing coincided with a wave of mass layoffs.

A total of 2,900 employees were laid off across various departments. That figure accounts for nearly half of Neta's total workforce.

Neta Provides Clarification

On the other hand, Neta provided clarification regarding the situation they are facing.

"The main goal of this restructuring is to ensure production, stabilize deliveries, and protect the rights and interests of consumers," Neta wrote in an official statement received by KatadataOTO.

The manufacturer from the Land of the Bamboo Curtain will be revitalized through debt optimization, management improvements, and capital injections.

They explained that they will collaborate with liquidators to raise capital from leading industries for joint investment.

The money received will be used to restore production, conduct research, technical development, and expand into international markets.

"At the same time, the initial management team will be optimized and reformed," they said.

Furthermore, a new CEO will be appointed by a senior executive with experience leading international automotive companies.

This will enhance the professionalism of the company's governance structure.

The electric vehicle (EV) manufacturer confirmed that its factory in Tongxiang, China, will gradually resume operations over the next six months.

They will then focus on guaranteeing the delivery of existing orders. The dealer system will then ensure a stable transition through debt-for-equity swaps and financial support.