Neta Auto in Crisis: Bankruptcy Reorganisation Begins Amid Wage Disputes and Debt

Chinese electric vehicle manufacturer Neta Auto has reportedly entered bankruptcy reorganisation proceedings as of June 12, according to a report by CarNewsChina.

The move follows a viral video that emerged on June 11, showing a group of employees confronting Neta chairman Fang Yunzhou at the company’s newly established Shanghai office over unpaid wages dating back to November 2024.

In the video, an employee confirmed that the company would begin bankruptcy reorganisation the following day. While it remains unclear whether the proceedings have officially commenced, the incident underscores the deepening crisis facing the company.

Neta Auto has been plagued by financial instability, with recurring cash flow issues, mounting supplier pressure, and the departure of key executives. Since 2024, the company has faced multiple court cases linked to debt defaults and broken capital chains.

Despite winning legal judgments, former employees have struggled to recover unpaid wages due to the company’s insufficient assets. In March 2025, court-ordered asset freezes on two of Neta’s affiliated bank accounts yielded less than 500 yuan (approximately USD 70), highlighting the severity of the situation.

The financial strain intensified after a mass layoff in late 2024, which saw more than 2,900 employees — nearly half of Neta’s workforce — dismissed across various departments. Several former staff members have claimed that salaries have been withheld since then.

Once a prominent name among China’s new-generation EV manufacturers, Neta Auto has witnessed a sharp downturn in sales. After delivering 152,000 vehicles in 2022, the numbers fell to 127,500 in 2023, and further declined to just 64,500 units in 2024. By January 2025, domestic deliveries had plummeted to a mere 110 units, effectively removing the brand from serious market contention.

Now under bankruptcy reorganisation, Neta Auto’s fate rests on whether the legal process can successfully restructure its operations and liabilities. The outcome will determine whether the company can stage a recovery — or fade into history as another cautionary tale in the volatile Chinese EV market.