Salary In Arrears, Employees Rampage: Neta Auto Trying To Save Manufacturers From Total Bankruptcy Today

Neta Aya. (Doc. Global Neta)

JAKARTA - Since the last few months, positive news is far from Neta Auto, which has been predicted to be one of the brightest stars in China's EV industry. Neta Auto is now reported to be starting today's bankruptcy reorganization process, Thursday, June 12, 2025.

This means Neta Auto will begin a legal procedure in which they will try to reorganize their debts and operations to avoid a complete closure. This is an attempt to save the company from full bankruptcy, usually with the help of the courts.

This news was reported by CarNewsChina, Thursday, June 12, after a series of crises hit the company, the peak was a dramatic incident in which employees confronted Neta Auto chairman Fang Yunzhou demanding unpaid salaries.

The video, which was widely circulated on June 11, 2025, shows more than 100 employees gathering at Neta Auto's new office in Shanghai, expressing anger over salaries arrears since November last year. An employee who was present at the scene revealed that the result of the confrontation was just a directive to wait for bankruptcy liquidation. In fact, a Neta Auto staff member in the video confirmed that the company would enter the bankruptcy reorganization process the following day, a detail also confirmed by other employees.

This incident is a tangible reflection of a series of issues that have plagued Neta Auto in recent years, including cash flow disruptions, executive exoduses, and pressure from suppliers. Since 2024, Neta Auto has been the subject of several court enforcements due to breaking capital chains and defaults.

Despite winning a lawsuit, a former employee who was laid off by mass nearly half of the company's 2,900 original employees admitted that they could not collect their salaries because Neta Auto reportedly had insufficient assets. For example, in March 2025, a court order froze less than 500 yuan (about 70 USD) in two Neta Auto affiliated bank accounts.

Most recently, on May 13, Shanghai Yuxing Advertising Co., Ltd. filed a bankruptcy review ofbolon New Energy (induk Neta Auto), accusing Neta Auto of debting 5.31 million yuan (about 740,000 USD) for advertising services. Although Neta Auto responded that this was a unilateral application of internal suppliers and operations to continue, facts on the ground spoke otherwise.

Sales Continue To Decline

Neta Auto, formerly a leader among the new EV manufacturers, experienced a drastic decline in sales. From 152,000 units in 2022, sales figures have fallen to 127,500 units in 2023, and have fallen to 64,500 units by 2024. At its peak, in January 2025, Neta Auto's domestic shipments only reached 110 units, effectively pushing the company out of the main market competition.

Neta Auto's story is a stern warning of the dynamics of violent competition in the Chinese EV market, where innovation and financial stability are key to survival. Neta Auto's future is now in the hands of the bankruptcy reorganization process, which will determine whether the company can bounce back or will become a record in the history of the automotive industry.