Sales Slump Prompts Job Cuts For Neta Auto In Thailand

Chinese electric vehicle (EV) manufacturer Hozon Auto, the parent company of the Neta Auto brand, continues to face financial difficulties. This follows recent reports of declining sales, production cuts, and employee layoffs at its Zhejiang plant in China.

According to Nation Thailand, Neta Auto (Thailand) is also grappling with significant financial challenges. As part of its restructuring efforts, the company has announced plans to cut 400 jobs at its corporate office and the Bangchan General Assembly plant in Bangkok.

This move comes as the company deals with a liquidity crisis, primarily driven by a sharp decline in sales.

The first 11 months of 2024 saw a 45.8% decrease in deliveries compared to the same period last year. During this time, the business was only able to deliver 6,534 Neta EVs.

Hozon Auto recorded a substantial net loss of THB1.8 billion (RM237 million) for 2023, in addition to the decline in sales. In 2022, the company had a profit of THB81 million (RM11 million). The firm has made a total of THB7.78 billion (RM1.03 billion) since its founding in 2019, however it has also lost THB1.72 billion (RM226.5 million).

The steep decline in sales, financial losses, and ongoing restructuring efforts highlight the considerable challenges Hozon Auto faces as it attempts to regain a foothold in the highly competitive global EV market.

Given Neta's recent financial crisis, questions arise regarding its future plans in Malaysia. Neta, through its local partner NexV Manufacturing Sdn Bhd (NMSB), is in the process of establishing a production facility in Rembau, Negeri Sembilan, with an expected annual output of 30,000 vehicles. Will this development still proceed as planned?

Additionally, there has been no official statement from the company regarding the recent ASEAN NCAP testing, where the Neta V received a zero-star rating.