Zhejiang Hozon New Energy Automobile, officially entered bankruptcy proceedings on June 19, 2025, following a lawsuit filed by a creditor over unpaid advertising service fees worth more than 5.3 million yuan (approximately 30 million baht). Several NETA showrooms in Shanghai have already closed, reflecting the company’s severe financial crisis.

Hozon Auto reportedly has outstanding debts totaling around 10 billion yuan (about USD 1.4 billion or 48 billion baht). According to court documents, as of April to May 2025, the company had less than 500 yuan (around 2,000 baht) in its accounts. This situation led hundreds of employees to stage a protest at the company’s Shanghai headquarters, demanding unpaid wages that have been outstanding since November 2024.

NETA Auto Thailand previously clarified that its parent company is not fully bankrupt, but rather undergoing court-supervised restructuring, which includes debt-to-equity conversion and efforts to attract new investors to sustain operations. Nevertheless, reports in Thailand indicate that a large number of staff were laid off at the end of May 2025, and many dealers are now facing shortages in parts and after-sales service, raising concerns in the local market.

This crisis comes amid intense competition in China’s EV market. NETA once enjoyed strong sales with 152,000 vehicles sold in 2022, but sales plummeted to just 110 units in January 2025, reflecting serious struggles in maintaining both customer base and financial liquidity.

For international consumers—particularly in Thailand—it is crucial to closely monitor the situation, as the parent company’s financial troubles could significantly impact after-sales support, spare parts availability, and warranty coverage going forward.

Source: Reuters