Toyota Reportedly Eyeing Neta Auto Acquisition—Although the Carmaker Denies It
Japanese automaker Toyota has refuted reports suggesting it is considering acquiring Chinese electric vehicle startup Neta Auto, despite mounting speculation and a recent report by Kuai Technology dated May 12.
The rumored deal, if true, could have marked a strategic push by Toyota to enhance its electric vehicle presence in China, the world’s largest EV market, as per a report by CarNewsChina.
Despite growing rumors that Toyota might step in, a spokesperson for the company dismissed the claims. “We haven’t heard anything about this,” said Xu Yiming, Brand Communications Director at Toyota China.
Neta Auto, established in 2014 under Hozon New Energy Auto, has been grappling with a severe financial and operational crisis since mid-2024. The company ceased production, implemented widespread layoffs, and launched an aggressive search for new capital.
By November 2024, reports had confirmed a production halt, workforce reductions, and pay cuts amid sharply declining sales. The company delivered just 64,500 vehicles in 2024, and in January 2025, monthly sales plummeted to a mere 110 units—representing a staggering 98% drop year-on-year.
However, should such a deal ever materialize, Toyota could theoretically leverage Neta’s local infrastructure and brand presence to fast-track its EV ambitions in China. However, Neta’s troubled finances, outdated technologies, and questionable performance claims make the company a high-risk proposition.
