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NETA Auto Parent Company Undergoes Major Debt Restructuring
Brickinfo News Agency – Hozon New Energy Automobile Co., Ltd., the parent company of NETA Auto, has officially announced it is undergoing an organizational restructuring process. This initiative, overseen by the Jiaxing Intermediate People’s Court in Zhejiang Province, aims to address financial challenges, strengthen partnerships, and improve management efficiency. The company states its objective is to ensure long-term stability and sustained growth.
The official statement, released on June 12, 2025, confirmed that Hozon has entered a government-led restructuring process. This move is primarily intended to resolve existing debt issues and attract new investment from business partners. The company highlighted that while it has faced operational hurdles and increased competition in the new energy vehicle (NEV) industry, including sales fluctuations and supply chain constraints for parts, NETA Auto maintained its core technological capabilities and market value. In 2022, NETA Auto recorded global sales of 152,000 units.
The restructuring efforts are focused on safeguarding the rights and interests of all stakeholders, including creditors, employees, and customers. Hozon has committed to prioritizing debt repayment to business partners and maintaining consistent customer service standards to minimize broader societal impact.
Strategically, Hozon plans to collaborate with an appointed management team to secure investments from leading domestic and international industry companies. These funds will be allocated for restarting production, research and development, and expanding international operations. The company also intends to optimize its management structure by appointing a new CEO with extensive experience in the global automotive sector to enhance organizational expertise.
Regarding operations, domestic production bases, such as the Tongxiang factory, are expected to gradually resume within the next few months, focusing on fulfilling existing orders. Financial support is also being prepared to ensure the stability of dealerships. International operations, particularly in key markets like Thailand, Indonesia, and Brazil, are not expected to be affected by the restructuring. NETA Auto Thailand has already initiated a new management system for parts procurement. The company also affirmed its commitment to comprehensive after-sales services, including OTA software updates, parts availability, and app-based services.
Looking ahead, NETA Auto’s R&D efforts will concentrate on electric vehicle innovations based on the HAOZHI technology platform, with a particular focus on the Skateboard Chassis platform and autonomous driving assistance technologies. The company plans to launch three new models by 2027, targeting the general consumer segment with prices ranging from 100,000–200,000 yuan, while also developing products for the premium market. Furthermore, NETA Auto aims to establish strategic partnerships and collaborations with new investors, employing a “Technology + Localization” strategy to penetrate high-growth international markets.
Hozon expressed gratitude to government agencies, partners, dealerships, and customers for their continued trust and support. The company pledged transparent communication and regular progress reports throughout the restructuring and recovery process, expressing confidence that with collective support, NETA Auto will emerge stronger and contribute to the growth of China’s new energy vehicle industry.
