Did Neta, which burned 30 billion Yuan, actually come back to life with just 3 billion?

In 2022, Neta was still the most prominent among China's new force automakers, surpassing Nio, XPeng, and Li Auto to become the sales champion.

However, this turned out to be its final moment of glory.

In the short few years after, the plot turned sharply downward, factories halted production, employees were owed wages, suppliers blocked doors demanding debt... Neta, which once shouted about making cars for the people, ultimately could not withstand the new energy elimination match.

Nearly 500,000 Neta owners could only watch helplessly as their beloved cars became abandoned vehicles.

Some even posted signs on the rear of the cars: Limited edition cars, repair costs are huge, do not approach!

Many thought this story had ended. No one expected that over a year after bankruptcy reorganization, Neta Auto actually waited for the "Taiyi Realist" to revive it itself — Taiyi Shenglian.

The restructuring plan disclosed in September 2026 shows that this company plans to invest 3 billion Yuan to exchange for approximately 70.62% equity of Hozon New Energy.

But this 3 billion Yuan cannot all be used for making cars. 1.167 billion Yuan must first be used to repay debts and restructure, leaving only 1.833 billion Yuan to restore production and turnover.

And Neta accumulated losses of 18.373 billion Yuan from 2021 to 2023 over three years.

Neta Auto, which lost 18.3 billion Yuan in 3 years, leaving 500,000 owners stranded, on what grounds is it revived again?

01

Burned 18.3 billion, only took 3 years

How long does it take a car company to go from sales champion to bankruptcy?

Neta's answer is: less than 3 years.

In 2022, with 152,100 vehicles, it topped the new force automakers in sales.

However, just three years later, a piece of bad news suddenly came: Neta was taken to court for owing advertising fees, and the bankruptcy reorganization procedure had begun.

Why was a car circle star company worth billions in financing tripped up by over 5 million Yuan in goods payments?

The answer has long been hidden in Neta's most distinctive tag: Cheap.

In 2014, Fang Yunzhou left Chery to start a business, establishing Hozon New Energy, which was the predecessor of Neta.

At the beginning of its founding, financing was difficult, and the company once failed to pay wages for half a year.

So from the beginning, Neta understood a simple principle earlier than many new forces: Don't talk about changing the world yet, just survive first.

What truly injected the soul into Neta was another key figure — marketing veteran Zhang Yong, also from Chery.

After Zhang Yong joined, the first thing he did was rename. Changing the forgettable "Hozon Auto" to a name known by all Chinese people — Neta.

Secondly, he found the most realistic marketing route for Neta.打出 "Make cars for the people" slogan, choose the consumption market below 200,000 Yuan, avoiding the 300,000-400,000 Yuan price bracket where Nio, XPeng compete most fiercely.

In 2019, Neta first挤进了 the new force table. That year, Nio delivered 20,000 vehicles, WM Motor 16,000, XPeng 16,000, Neta with 10,006 vehicles just crossed 10,000, not very eye-catching.

But it had a very clear tag: Cheap. At that time, Neta N01 after subsidies had a starting price of only 66,800 Yuan.

Facts proved, this trick really works. Relying on low-price models like Neta V, its sales like sat on a rocket.

But looking back, Neta's most glorious time was also its most dangerous time. The tag "Low price cars" was firmly welded on the body, becoming the tag that was difficult to shake off in the future.

After securing the sales champion in 2022, Neta immediately entered the mid-to-high-end market, launching the Neta GT priced at 178,800 Yuan-226,800 Yuan. As a result, throughout 2023, it delivered only 127,500 vehicles, failing to complete the annual sales target of 250,000.

In 2022, it won the sales champion with 150,000 vehicle sales, but left 6.67 billion Yuan net loss. By 2023, when Nio, XPeng, and Leapmotor had already achieved profitability, Neta was still deeply mired in losses.

Deeply mired in losses, financing was difficult, that debt payment eventually became the last straw. The sales champion pushed out by low prices was eventually trapped by low prices.

And in the new energy elimination match, such "abandoned vehicles" are not just Neta.

02

Abandoned bankrupt car companies left a mess of pits

After the restructuring news spread, some questioned: Such a huge pit, is there actually anyone scrambling to take over?

According to Cailian Press reports, in Neta Auto 2026 restructuring plan, only the ordinary claims, priority claims and employee claims included in the plan exceed 14 billion Yuan.

Actually, capital eyeing "abandoned car companies" is not just one family.

After WM Motor reorganized, new investors announced investment funds to restart the Wenzhou factory, even re-raised the slogans of production resumption and IPO. After HiPhi entered restructuring, it also designed plans such as debt-to-equity swap.

New energy car companies burn money while alive, after they die, why did they become delicacies instead?

The answer is, creating a car company from scratch is a money-burning black hole, but acquiring a fallen car company is a rather cost-effective deal.

Take Neta for example, after bankruptcy reorganization acceptance, its total asset evaluation market value is about 1.742 billion Yuan, liquidation value is even only about 830 million Yuan.

Now Taiyi Shenglian investing 3 billion Yuan can obtain about 70.62% equity of Hozon New Energy.

Moreover, what capital is truly eyeing is the car production lines Neta spent ten years, burned over 10 billion after, left behind.

If starting a car company from scratch today, must assemble R&D teams, develop models, test verification, polish supply chains, also build factories, apply for qualification certificates, lay out sales and after-sales networks. Every step, means time and real gold and silver.

Although Neta has fallen, the previous car production lines did not scrap with it.

Its vehicle platforms, equipment and factories are not completely stopped, and has even laid out production bases such as Tongxiang, Yichun, Nanning, overseas has Thailand, Indonesia and other market channel layouts.

Now the restructuring plan to undertake, is precisely these core assets.

Precisely because of this, the more brutal the new energy elimination match, the more likely abandoned car companies will have someone take over.

As of May 2026, there have been 23 new energy car companies entering bankruptcy, restructuring or substantive stoppage, cumulative compliant sales about 850,000 vehicles.

The new energy elimination match to today, a batch of car companies burned the money for R&D for latercomers, built factories, stepped on the supply chain pits, finally fell at the finish line due to cash flow break.

Consumers avoid abandoned vehicles in the used car market, but capital started looking at abandoned car companies to buy the dip in the primary market.

After all, car production lines can be used again, historical debts can even be rearranged through restructuring.

But the trust consumers have lost, no one knows how much it costs to buy back.

03

"Resurrected" abandoned cars still need to earn back reputation

For car companies, bankruptcy reorganization may just be the company changed a boss.

For owners, it could be a car bought for over 100,000 Yuan suddenly became "electronic orphans".

In the era of smart electric vehicles, a car is no longer just "four wheels and a battery". Behind it are connected vehicle service, mobile App, intelligent driving systems, three electric diagnosis programs, and data that only original manufacturers have permission to view.

Once the car company disappears, the "digital umbilical cord" behind the whole car is cut off.

For example, "Securities Times" once reported, a WM Motor E.5 owner encountered power battery failure, drove the car to a third-party repair shop, but couldn't even find the problem. Reason, the three electric detection programs and fault codes are all in the original factory's hands.

Finally really need to change the battery, quote high up to tens of thousands of Yuan, fast catching up to one-third of the original car price.

Not only WM Motor, there was also a HiPhi owner, accidentally hit the bumper, because original factory parts discontinued supply, looked for months still didn't find suitable parts.

So "Limited edition cars, repair is very expensive", is really not just owner self-mockery.

Besides repair difficulty, saying stop just stop service also makes owners walk on thin ice.

In 2025, "Legal Daily" reported, a Neta owner ready to drive to work, but suddenly found Neta App stop service, mobile key malfunctioned, couldn't even lock the car door.

Although service recovered a few hours later, those few days, he didn't dare to drive the car.

More troublesome is still behind, after car insurance expiration, he asked several insurance companies continuously, didn't succeed in buying commercial insurance, could only "run naked" on the road.

Also Neta owners received sales point notices, vehicles listed in high risk directory. The original insurance company also directly indicated, because car company operational problems occurred, some parts supply existence risk, car loss insurance cannot continue underwriting.

In response to this situation, the law actually gave car companies a red line long ago. "Car Sales Management Measures" clearly requires, model production stop or sales stop, suppliers still should guarantee at least 10 years of parts supply and corresponding after-sales service.

But the problem is, a company if connect employee wages and supplier goods payments cannot pay out, originally promised ten years after-sales, can only become unpaid bills no one cashes out.

Of course, not all "abandoned cars" will finally become orphans.

At the end of 2024 JiYue fell into operational crisis, shareholder side continues intervention after-sales.

By 2025, JiYue cooperated with Lynk & Co, designated stores continue provide repair services, road rescue and part intelligent driving OTA also able to continue.

This case actually shows one thing: After car companies go bankrupt, after-sales whether can continue, is not technical problem, just look at whether anyone willing to continue responsible.

This is also Neta's real problem. Once sold 152,100 vehicles Neta, now restructuring first stage, only plan from 10,000 vehicles start again.

But before persuading these 10,000 new owners to pay money, it first must let nearly 500,000 old owners re-trust one thing: This time, car company won't throw them on the halfway again.

After all, car companies can bankruptcy reorganize, consumer trust cannot restart with one click.