Preparing to restart the production of the Tatly overturned Neta EV, how many companies are likely to make a comeback?

Kathmandu Chinese Electrical Vehicles (EV) Manufacturer Company Neta Auto is preparing to resume its production. Which has indicated the resurgence of the company. The company is currently moving forward in the process of restructuring from the tightening situation.

According to local communications reports, employees working in a factory in Tongsian, Zhejiang Province, Neta, have received a full-time payment of July, which has clearly indicated that the product will resume.

Neta Auto has faced major operational challenges in recent years. Earlier, Neta’s employees were receiving only a minimum monthly salary, which was slightly higher than the 2000 yuan (about a thousand rupees). Also, some employees were receiving only 0 percent of their normal monthly salary.

Employees’ salary payments have been halted since November 202. The company also made heavy staff cuts, which reduced manpower by half. Thus the number of employees dropped from 000 to less than 1,000.

The company is mentioned to have more than 1 billion yuan (approximately Rs 1 billion) of suppliers. Total in the accounts of the concerned company according to the court record of March 2026 Cash less than 00 yuan Was, which reflects the seriousness of the cash shortage. Neta’s mother-in-law, Hozon Auto, has suffered more than a total of 1.6 billion yuan (about half a trillion rupees) from 2021 to 202.

Although delivering 100,000 ⁇ 2,000 EVs in 2022, the number dropped to ⁇ 2000. The company has also stopped making public the facts of monthly delivery since October 202. Production was also halted due to the closure of supplies after major suppliers, including battery maker CTL, were not paid.

In addition, the company’s ownership structure also caused tension. Neta’s highly divided stock structure made it difficult to reach consensus on important decisions. In which the largest shareholder owns only 1.1 ⁇ %. The IPO’s plan was postponed twice in 2021 and 2022 due to tensions between shareholders.

Opportunities for cooperation with international companies, such as the Stellantis Group, have also been lost since some shareholders did not want to leave equity and foreign market sales rights. At the end of 2020, Zhawang resigned as CEO and the founder, Fan Yunzhou, was re-led by the company. Continuous changes in internal conflict and management have led to incompetence in research and development. Which caused a huge amount of resources and money to be wasted.

High-level models, such as the Neta S and the Neta GT Sports Car, released in 2022, did not achieve the expected success. In 2026, Neta S’s sales accounted for only 2,000 units and 1,000 units of sales of Neta GT throughout the year. The company’s management rejected the advice of shareholders making medium-sized SUVs. While this strategy proved successful for other companies.

The company initially focused on the ‘B-Side’ (business-to-business) market, such as ride-hatching and rental vehicles. Although it helped create good demand in the market, this strategy failed in 2016 with the collapse of the shared economy (sharing economy). Fang Yunzhou, the founder who lost the user base, has acknowledged that the company seeks to go to the premium market by forgetting the original purpose of making a car that the general public can buy.

Neta developed an annual production capacity of more than 1 million units in four factories in three locations, including Toxia, Yichun and Nanning. While the company’s most annual sales were only about 1.6 million units. The strategy to increase production capacity efficiency has led to excessive costs. Like the construction of the Yichun factory, only 1 billion yuan and Thailand’s factories invested about 110 million yuan. This model is said to be ‘leaves thirst by drinking the subject’.

The company’s second-largest shareholder, Zhou Hoi (founder of 0 Group), made great efforts to focus on the company’s marketing and online traffic. He criticized the company’s weaknesses by making public the dispute with CEO Jhan Yong.

Neta L Carr received more than 0,000 orders a day from Zhou Hoang’s attempt. But the delivery was delayed as the company’s production capacity (especially the lack of Michelin tires) decreased and the customer’s order can be higher. Thus the company was not capable enough to handle excessive traffic.

The mother company of Neta, Hozon Auto, was founded in October 2016. Which is now the top RestructuringIs at an important stage. After the employees of the Tungsten factory received their full salary in July, they are currently engaged in testing sanitation, content management and equipment in the factory. Neta is contacting stores that want to revive its sales and service network.

By mid-August ⁇ investors have shown interest. Of which ⁇ have expressed a desire to provide financial assistance to resume production. Hozon Auto opened a pre-registration channel on July 10 to bring investors through Alibaba’s property trading platform.

Interested investors will have to deposit five million yuan (approximately Rs 10 million) by September 2. According to the official announcement of July 21, 2026, some investors have completed the initial selection phase and are expected to enter more high-quality strategic capital.

On June 12, 2026, Hozon New Energy formally entered the restructuring process. However, there are still big challenges in front of Neta. The lack of large investment, the burden of heavy debt and the growing competitive market need to accelerate production development and improvement in the supply chain. It will take time to regain the trust of past employees and suppliers. Neta’s future will depend on successful restructuring, additional investment and potential leadership changes. 

Market problems, such as the high capacity seen in the Chinese EV market, Price War and the priority of established international brand copies of consumers, will also add more challenges to the resurgence of Neta. According to the report of the Securitis Times, investors were openly invited to reorganize Neta Auto by early August. The future of the Neta car depends on the success of restructuring efforts and securing additional investment. Many Company ‘Appendix Price’ (residual value) Still believed to be attractive.