Neta's Parent Company Reportedly Entering Bankruptcy Filing Process

KatadataOTO – Zhejiang Hozon New Energy Automobile, the parent company of Neta, has officially undergone the process of filing for bankruptcy. This situation is not too surprising as the issue has been widely discussed recently.

Reporting from Reuters, Shanghai Yuxing Advertising, as the company's creditor, has filed a bankruptcy petition against Hozon. This is because exhibition fees, both domestic and international, have not been paid.

A number of dealers in Shanghai have also reportedly closed, making their situation more complicated. This is because the company cannot sell its vehicles as optimally as before.

The issue of Neta's bankruptcy has indeed been widely discussed recently. The company is reportedly under pressure, forcing it to restructure to survive and be under court supervision.

Photo : CarNewsChina

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

It is recorded that 2,900 employees were laid off across various departments. That figure accounts for nearly half of their total workforce.

Meanwhile in Indonesia, Neta is also under pressure. This is evident from the closure of their first dealership in the Kelapa Gading area.

However, the company claims the decision was made by mutual agreement and continues to prioritize the interests and continuity of after-sales services.

“This business decision does not affect Neta Auto Indonesia's commitment to supporting the growth of the electric vehicle industry in the country,” said Frietz Frederick, Brand PR and Digital Senior Manager of Neta Auto Indonesia, when contacted by KatadataOTO some time ago.

Meanwhile, Neta's sales in Indonesia cannot be said to be good. Based on Gaikindo data, the Chinese manufacturer only sells about 50 units per month.