Neta Auto, once a rising star in China’s electric vehicle market, is reportedly set to commence bankruptcy reorganization proceedings today, June 12, 2025. This development follows a dramatic video circulating online on June 11, showing employees confronting Neta Auto Chairman Fang Yunzhou at the company’s new Shanghai office, demanding overdue wages.

According to an employee present at the scene, over 100 individuals gathered, and the outcome was merely a directive to await bankruptcy liquidation. A Neta Auto staff member in the video confirmed that the company would enter bankruptcy reorganization proceedings the following day, a detail also corroborated by the employee.

This latest incident is a stark reflection of the series of crises that have plagued Neta Auto in recent years, including cash flow disruptions, executive departures, and pressure from suppliers.

Neta Auto has been subject to multiple court enforcements since 2024 due to broken capital chains and debt defaults. Employees claim they have been owed wages since November of last year, a period when Neta Auto underwent a large-scale layoff of over 2,900 people, nearly half of its original workforce, across various departments. Despite legal victories, former employees have been unable to collect their owed wages, as the company reportedly has insufficient assets to seize. For instance, in March 2025, court orders froze less than 500 yuan (70 USD) combined in two of Neta Auto’s affiliated company bank accounts.

On May 13, Shanghai Yuxing Advertising Co., Ltd. filed for bankruptcy review against Hozon New Energy, alleging Neta Auto owed 5.31 million yuan (740,000 USD) for advertising services and failed to fully honor a repayment agreement. Neta Auto, however, responded that this was a unilateral application by a supplier and that the company had not initiated bankruptcy proceedings, with internal operations continuing.

Once a leader among emerging EV manufacturers, Neta Auto’s sales plummeted from 152,000 units in 2022 to 127,500 in 2023, and further to 64,500 in 2024. In January 2025, domestic deliveries dropped to a mere 110 units, effectively pushing the company out of the mainstream.

Source: TMTpost