Chinese EV Maker Neta Facing Potential Bankruptcy, Exits Indonesia
A prominent Chinese electric vehicle (EV) manufacturer, Neta, is reportedly on the verge of bankruptcy, causing the closure of its initial Indonesian dealership after only a brief period. This development signals the increasing volatility in the rapidly evolving EV market and the challenges faced by newcomers.
Financial Distress Revealed
Reports indicate that the parent company of Neta, Zhejiang Hozon New Energy Automobile, is facing potential bankruptcy. According to Reuters, a creditor has already filed a bankruptcy petition against the firm. Furthermore, closures of Neta showrooms in Shanghai, China, have been documented.
“According to the platform disclosure of the bankruptcy of the Chinese national company, a creditor last month submitted a bankruptcy petition against the company,”
—Source, News Outlet
The creditor, Shanghai Yuxing Advertising, cited unpaid exhibition printing costs in their petition. This situation arises amid a broader slowdown in the Chinese economy, affecting various sectors, including electric vehicle production (Statista, 2024).
Indonesia’s Dealer Closure
The competitive Indonesian EV market witnessed the closure of Neta’s first dealership in Kelapa Gading, North Jakarta. The dealership, which commenced operations on November 9, 2023, ceased activities in April 2025.
According to Frietz F Roboth, Brand Pr & Digital Manager for Neta Auto Indonesia, the closure resulted from strategic business considerations. He highlighted that this decision was a mutual agreement to prioritize customer interests and after-sales service continuity. The dealer offered a fast-charging station and various maintenance services.
Sales figures for Neta vehicles in Indonesia during the first quarter of 2025 were not encouraging, with only 198 units sold. March saw a particularly low sales volume of just 55 units.
Impact on Workforce
In China, Neta has implemented layoffs. Reportedly, about 200 employees resigned out of a total workforce of 1,700. This measure reflects the impact of declining sales on the company’s operations.
Despite the closure, Frietz confirmed that existing customer warranties, emergency road assistance, and other services remain valid through other official Neta dealerships.