hinese electric vehicle maker Neta Auto has reportedly dismissed its entire research and development (R&D) team amid ongoing financial difficulties, Chinese media outlet Leiphone reported. The move follows earlier reports of salary reductions and production halts at the company’s main plant.
Around 200 of Neta’s 1,700 R&D employees have already accepted severance packages this week, according to Leiphone. The layoffs raise concerns about the company’s ability to maintain innovation and competitiveness in China’s crowded EV market.
See also: Neta Auto Gains Local Support Amid Restructuring and International Expansion
Industry data suggests a sharp decline in Neta’s market performance. The company sold fewer than 400 vehicles in February 2025, a 98% drop from the previous year, according to China EV DataTracker. This marks a stark contrast to its peak sales period in autumn 2022, when Neta sold up to 18,000 cars per month.
Citing unnamed sources, CarNewsChina reported that Neta has accumulated debts of up to 10 billion yuan (€1.27 billion). While discussions are reportedly underway with a foreign sovereign wealth fund for potential financing, doubts remain about the company’s ability to secure long-term stability.
At Neta’s Shanghai headquarters, suppliers have staged multiple protests demanding overdue payments, with some reportedly spending nights in the building’s entrance to avoid being turned away.
See also: Neta Auto Implements Major Restructuring Amid Declining Sales and Financial Struggles
Employees who opted for voluntary redundancy in November 2024 have yet to receive their severance pay, the report added. Meanwhile, salaries of remaining staff were first cut by 50% in November and have now reportedly been reduced by another 50%, leaving workers with just 25% of their original October 2024 pay.
Neta, established as a mainstream NEV brand by Hozon Auto in 2018, had early success but struggled amid intensifying competition. Founder and former CEO Fang Yunzhou recently announced a reorganization plan focusing on foreign markets and more profitable products. However, industry analysts suggest the move may have come too late.
Source: Carnewschina