KATHMANDU: Toyota is exploring the possibility of acquiring troubled Chinese electric vehicle company Neta, as per media reports.
Multiple automobile news portals carried the story on Monday, citing Kuai Technology.
Although neither Toyota nor Neta has said anything about the acquisition, the deal is expected to help Toyota grow its EV business in China and give Neta a much-needed financial rescue.
Neta has been facing serious problems since mid-2024. It has ceased production, laid off many workers and has been trying to get new investments. The company’s woes came to light when its latest fundraising attempt failed on February 10. A major investor backed by a BRICS nation had promised to invest in the company on condition that Neta first restarts its production and gets more investors. However, it did not happen.
According to media reports, Neta’s market value has crashed from 42.3 billion yuan in 2023 to just 6 billion yuan in 2025. The company has accumulated 18.3 billion in losses and owes 6 billion yuan to suppliers.
The Chinese carmaker has proposed converting 70% of its debt into shares and paying the remaining liabilities in instalments.
Without new funding, Neta may be unable to pay its workers and could face bankruptcy. In the case of bankruptcy, government investors would be prioritized in the settlement of liabilities, leaving suppliers at risk of significant losses.
The company is also facing troubles in Thailand, where it may have to return government subsidies if it fails to meet its 2025 production targets. In its bid to stay afloat, Neta recently secured a 2-billion-yuan debt-to-equity deal with 134 suppliers and gained backing from investors in Thailand and Hong Kong. This shows that the company still holds some market and technological value.
However, Neta’s sales have plummeted. In 2024, it sold 64,500 vehicles, but in January 2025, sales dropped 98% to just 110 units. The company has been widely criticized for using outdated technology and making misleading performance claims. The crisis worsened after a video of Neta founder Fang Yunzhou tearfully apologizing to suppliers and dealers went viral.
If Toyota goes ahead with this deal, it could be good news for Neta users worldwide, including Nepal.
Neta quickly became one of the most popular EV brands in Nepal. CG Motors, the official distributor for Nepal, sold a large number of Neta V models.
Currently, many Neta owners in Nepal are confused and anxious about the future of their vehicles. A partnership with Toyota could reassure them, ensuring continued service, spare parts and long-term support.
