Neta Is Overshadowed By Crisis, Representatives Of Dealers In China Protest In Front Of Factories

Neta X. (Doc.Honzon Auto)

JAKARTA - Unpleasant news came from Neta Auto. The brand, which is under the auspices of the Hozon Auto company, is facing a serious crisis in China.

Launching from CarNewsChina, Thursday, April 17, Neta is facing a crisis as representatives from a network of dealers gather at a company-owned factory, precisely in Tongxiang, China are demanding payment for vehicles that have not been sent and compensated for losses.

According to several reports, more than twenty representatives from the Neta national network consisting of more than 300 authorized dealers gathered at the factory gates to voice their complaints.

The protests highlighted the deteriorating financial situation in one of China's former electric vehicle startups.

In the video footage circulating, dealer representatives stated that they were still running operations even though manufacturers failed to ship vehicles, carried out mass layoffs, stopped business operations, and handled supplier debt claims for more than half a year.

According to dealer representatives, they continue to carry out operations as usual to pay salaries and employee allowances, continue to pay taxes, and avoid negative publicity while Neta fulfills her promise.

"We believe manufacturers will keep their commitments, but since last September, the company has never responded to any of our concerns directly," said one dealer representative.

There are three special demands requested by the dealer, namely compensation for operational losses from September 2024 to date plus upfront payments for operational costs from May to July 2025.

Then, they demanded immediate payment of all unpaid price discounts and subsidies for prepaid vehicles but not yet delivered by May 11 and immediate recovery of the full-tale service system to support some 400,000 customers.

"We don't want Neta to collapse, we just want accountability," added one dealer representative.

Neta has been experiencing financial problems since late 2024, with many reports of layoffs and salary cuts. In fact, the company's founder, Fang Yunzhou, stepped in to address this issue and took a position as CEO while leaving as Chairman.

Zhang Yong, who previously occupied the position as CEO, was transferred to an advisor. He said he was one of the parties responsible for the crisis.

Neta's domestic sales plummeted. Data shows the company only sold 487 vehicles in January and February 2025, without a sales figure disclosed for March.

Current sales show minimal demand for its lineup of models, with Neta X contributing only 272 units and NETA L as many as 149 units during this period.