Chinese electric vehicle (EV) maker Neta Auto, a subsidiary of Hozon Auto, has initiated significant organizational changes, including extensive layoffs, as it confronts operational challenges. Local media outlet Cailian reports that layoffs began today, with one insider suggesting the reductions could affect up to 70% of staff. Another source noted that the scale of layoffs varies by department and may not reach such high levels overall.
A Neta source confirmed the restructuring effort, which includes layoffs, though specific figures remain undisclosed. This follows an all-employee equity incentive plan announced on October 29, where Neta detailed intentions to streamline its operations, focus on core business areas, and reduce costs by flattening management structures.
Netaâs restructuring comes amid persistently weak financial performance. According to its prospectus, Neta has accumulated losses totaling RMB 18.38 billion ($2.5 billion) from 2021 to 2023, with gross margins showing improvement but remaining negative. The companyâs gross margins were -34.4% in 2021, -22.5% in 2022, and -14.9% this year. Sales have also declined; Neta delivered 10,118 vehicles in September, marking a 23.41% drop from a year earlier and an 8.06% decrease from August. Cumulative sales from January to September reached 85,908 units, down 12.13% year-over-year.
Despite filing for a Hong Kong listing in June, Hozon has not reported further progress on this front. The Neta brand currently offers several EV models, including the Neta X, Neta GT, Neta S, Neta Aya, and Neta L, targeting a mid-range market with prices between RMB 100,000 and RMB 200,000 ($14,000â$28,000). However, the company has not released its October delivery figures, in contrast to other Chinese EV makers.
