• Employees at Neta's factory in Tongxiang, Zhejiang, have received their full July salaries, indicating that the company is set to resume production, according to a local media report.
• Forty-seven potential investors are willing to provide financial support for Neta's resumption of production, the report said.

Neta Auto is reportedly set to resume production, marking a potential revival for the Chinese electric vehicle (EV) maker currently undergoing bankruptcy restructuring.

Employees at Neta's factory in Tongxiang, Zhejiang province, have received their full July salaries, indicating that the company is set to resume production, according to a report by local media outlet Sina Auto today.

Prior to this, Neta employees had only received the minimum basic monthly wage of over RMB 2,000 yuan ($280), with some employees receiving only 50 percent of their normal monthly wages, the report noted.

In addition, Neta is communicating with stores willing to continue serving the brand to provide material and financial support, according to the report.

Neta's current employees are busy cleaning, organizing materials, and testing equipment, the report said.

Despite Neta entering bankruptcy restructuring, 47 potential investors have expressed willingness to provide financial support for its resumption of production, the report said.

Neta's parent company, Hozon Auto, has opened an investor recruitment channel on an asset trading platform under Alibaba and began accepting pre-registration materials on July 10, according to the report.

Hozon Auto was established in October 2014 and obtained automobile production qualifications in April 2017.

Neta delivered 152,073 vehicles in 2022, an increase of 118.26 percent compared to 2021, according to data compiled by CnEVPost.

However, the company's vehicle delivery performance has been weak over the past two years, and it has ceased reporting monthly delivery figures since October 2024.

Last November, the company began large-scale layoffs as it faced financial difficulties.

On March 25, Jiemian reported that Neta had reached a debt-for-equity swap agreement worth over RMB 2 billion ($300 million) with 134 domestic core suppliers to prepare for resuming production.

Neta offered suppliers a plan whereby 70 percent of their claims would be converted into equity in the parent company Hozon Auto, with the remaining 30 percent of claims to be treated as interest-free debt, according to the Jiemian report.

On May 30, 21jingji reported that the debt-for-equity swap plan had failed because supplies were only willing to accept a scheme that would help Neta resolve RMB 2 billion in debt, leaving several hundred million yuan in debt unresolved.

($1 = RMB 7.1845)