A manufacturer on the verge of bankruptcy shows that in China all that glitters is not gold

Europe, the United States and Japan have always led the automobile industry. Its advanced technology has always been one step ahead of the rest of the world, however, over the last few decades numerous figures have emerged that have shaken the basic foundations of the market. First the Koreans with their attractive cars and great value for money. Now, with the arrival of the electric car, it is China that seems to stand out, although You just have to lift the rug a little to realize that all that glitters is not gold.. There are companies that are having a bad time.

In just a decade, China has completely transformed its automobile fleet. In the last 10 years, the market share of electric and plug-in cars has grown to become the largest in the country.. As? Well, based on a lot of work, big projects, rapid and constant evolution and, above all, with a commercial offer that revolves around popular prices. In China an electric car is significantly cheaper than anywhere else in the world. Not only do we say it, there are many examples, like that of Chinese CUPRA Tavascan signed by the new Volkswagen company.

European tariffs hinder expansion options in Europe

In China there are more than 150 different brands fighting for a piece of the enormous automobile commercial pie. With more than 1 billion inhabitants, China has become the main market for many European brands, such as Mercedes. In 2023, the Chinese market represented 36% of the German brand’s total sales. The dependence on Europe is total and more and more Chinese brands are deciding to pack their bags and look for luck abroad in the face of the excessive supply that many experts have been warning about for some time. There are too many electric cars. Too much commercial offer and in the face of such a war there are some that cannot survive, as is the case of Neta.

It is very possible that you do not know her, that is normal. Neta was founded in 2018 by Hozon Auto as an attractively priced, generalist electric vehicle manufacturer. This strategy allowed it to overtake other more popular automakers such as Li Auto, NIO and Xpeng in 2022with an annual volume of more than 150,000 cars. At that time, seduced by its great importance, Neta decided to go upmarket by launching technically advanced models with a higher price. Its current model line-up consists of six vehicles: Neta Aya (Neta V II), Neta GT NetNeta L, Neta S and Neta S Hunting.

Much of that production went to car sharing serviceswhich has not been well received in China. The problem is that by raising prices the company lost much of its attractiveness and sales have fallen significantly in these two courses. Between January and September 2024, Neta has delivered 53,853 units, 30% of its annual target. Given this weak commercial state, chinese fonts They assure that the Neta factory in China, with a production capacity of 200,000 cars per year, has stopped its activity during the first part of this month. Cuts in workers’ salaries are also reported. A dark future lies on Neta’s sphere.

Overall, Neta suffers from low sales volume in China, but on the other hand Overseas sales could become lifeboat for this automaker. Neta has entered several markets in Central Asia, Southeast Asia, Latin America and South Africa. I also had planned to enter Europe. However, EU tariffs could significantly affect these plans. Neta’s example is one more that although China dominates the electricity market with its launches and technology, there is not possible space for so many different brands and models in the same price range.