Crisis of Chinese Electric Vehicle Manufacturer Neta
The Chinese company Neta, which specializes in the production of electric vehicles, has encountered serious financial difficulties. In 2024, it sold 64.5 thousand cars, but at the beginning of 2025, its sales dropped to a minimum. This led to a production halt and mass layoffs. As of the beginning of the year, the company’s value was estimated at approximately 6 billion yuan (828 million dollars).
Japanese automaker Toyota, previously criticized for its slow transition to electric vehicles, is now actively investing in this market, especially in China. Rumors suggest the company may be considering acquiring Neta. In February, Neta received an investment promise ranging from 552 to 621 million dollars, but the deal fell through due to the failure to resume production.
Xu Yiming, Toyota’s brand communications director in China, has denied any knowledge of the company’s interest in buying Neta
Prospects for Toyota
If Toyota does acquire Neta, it will gain access to the Chinese company’s technologies and assets, as well as deepen its understanding of the local market. However, there is no official confirmation of these plans yet. For Toyota, which has over 130 billion dollars in cash, such a deal could be profitable, considering Neta’s current situation.
The state of the Neta company became particularly critical in January 2025, when it sold only 110 cars. This indicates a deep crisis that requires a quick solution. Against the backdrop of overall growing competition in the Chinese electric vehicle market, such weak performance could be fatal for small manufacturers.
It remains unclear whether Neta will manage to find a new investor or owner. In any case, the company’s future fate will depend on the speed of decision-making and the ability to restore production processes. For Toyota, this could be a chance to strengthen its position in China, but the risks are also obvious, given Neta’s financial problems.