Zhejiang Hozon New Energy Automobile, the parent company of Chinese electric vehicle brand Neta, is facing formal bankruptcy proceedings, according to Chinese state media CCTV and Reuters.

The situation has triggered concerns in Thailand, where Neta operates a local EV production line.

According to the Bangkok Post, Neta Auto Thailand could be required to repay more than 2 billion baht (approximately IDR 998 billion) in government subsidies if it fails to meet the production commitments outlined in the country’s EV subsidy program.

Thailand’s Deputy Finance Minister, Paopoom Rojanasakul, stated, “If the company cannot fulfill these requirements, it must return the funds”.

Thailand grants EV subsidies of up to 100,000 baht (about IDR 50 million) per unit, and also offers reductions in import duties and excise tax. In return, automakers must build EVs locally.

By 2026, for every imported vehicle, two must be locally manufactured. This increases to a 3:1 ratio in 2027.

Hozon Auto Struggles with Debt, Halts Factory Plans

Hozon Auto is currently restructuring its management and finances. The process includes exploring a conversion of debt into equity and securing new capital.

The financial crisis has already disrupted plans to build a factory in Thailand.

Despite this, Sun Baolong, Head of Southeast Asia Business at Hozon Auto, told Thai customers that local production and sales operations are still running and that the financial issues are expected to be resolved soon.

Neta in Indonesia: Dealership Closures and Low Sales

In Indonesia, Neta has also begun to show signs of strain. Its first dealership, located in Kelapa Gading, Jakarta, closed in April 2025 after only 1.5 years in operation.

The outlet, which opened in November 2023, featured a 1,628 m² facility with a 47kW DC Fast Charging Station.

Frietz F. Roboth, Brand PR & Digital Manager of Neta Auto Indonesia, described the closure as a strategic business adjustment, reached through mutual agreement.

“This decision was made in consideration of customer interests and future after-sales service continuity,” he said.

According to Gaikindo, Neta sold only 198 units from January to March 2025, with just 55 sold in March.

Workforce Cuts and Dealership Rebranding Reported

In China, the restructuring has led to layoffs. Car News China reported that 200 employees out of 1,700 have signed resignation letters.

In Jakarta, multiple Neta dealerships have closed or rebranded. The Kelapa Gading location is expected to become a Jaecoo dealer, while the Puri Indah outlet is reportedly converting to Xpeng.

Restructuring Claims No Impact on Overseas Operations

In a formal statement dated June 12, 2025, Hozon New Energy confirmed its restructuring aims to resolve debt through legal procedures, improve management systems, and attract strategic partners.

“We understand that this decision impacts every partner, employee, and vehicle owner,” the company stated.

Hozon asserted that its international operations remain unaffected. “Guarantee agreements have been signed with overseas dealers.

Spare parts supply and after-sales service networks are operating fully,” the statement said.

In Indonesia, Fajrul Ilhami, External Affairs & Product Director at Neta Auto Indonesia, affirmed that production continues through a contract with PT Handal Indonesia Motor valid until 2028.

Neta also recently signed an after-sales service agreement with Otoklix.

PHOTO: NETA DEALER

This article was created with AI assistance.