According to reports by CarNewsChina, Neta Auto has resumed full salary payments at its Tongxiang plant in China. This marks a step towards the brand restarting operations as it navigates a bankruptcy restructuring.
As part of the restructuring process, Hozon New Energy, the parent company of Neta Auto, released a public notice on August 4 this year seeking strategic investors to participate. This comes after the company previously opened a pre-registration channel a month prior on July 10 via Alibaba’s asset disposal platform to attract capital.
A total of 47 entities has reportedly submitted expressions of interest, with their next step being to submit a deposit of 50 million yuan (about RM29.4 million) by September 15 to show they mean business.
Neta’s troubles include months of cash flow problems and unpaid employee wages dating back to November 2024, which led to large-scale layoff that saw its workforce reduce by half. It all culminated in the company officially entering bankruptcy proceedings in June 2025.
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