Toyota Might Acquire This Struggling Chinese EV Brand | Carscoops

      Neta nearly secured over $500 million in new investment this year, but the deal ultimately fell through.

      17 hours ago

      by Brad Anderson

      Neta’s sales have plummeted this year after it sold 64,500 vehicles in 2024. The company has halted production and laid off a significant number of its employees. By early 2025, its valuation was approximately 6 billion yuan, or $828 million.

      While many have criticized Toyota for its gradual shift towards battery-electric vehicles, the automaker is now making substantial investments in this area, especially in China. Toyota's next possible move could involve acquiring one of the numerous small EV brands in China facing financial difficulties: Neta.

      Toyota has frequently faced scrutiny for its slow adoption of battery-electric vehicles. Nonetheless, it is now ramping up its investments, particularly in the Chinese market. A logical next step for the Japanese company may be to acquire Neta, which is among the struggling small Chinese electric vehicle brands.

      Established in 2014 by Hozon New Energy Auto, Neta has introduced several attractive models, including the GT two-door sports car, the S sedan, and the S Hunting Edition, a stylish sports wagon. However, since mid-2024, the company has encountered significant financial difficulties, resulting in a halt in production and employee layoffs.

      Earlier this year, an investment deal seemed to be within reach. In February, Neta managed to secure between $552 million and $621 million in new funding, but this deal was dependent on the resumption of production, which did not occur, leading to its collapse. Now, Toyota appears to be considering the opportunity to acquire Neta's assets.

      As reported by China's Kuai Technology, Toyota is contemplating the purchase of Neta. While specifics regarding the potential acquisition cost remain undisclosed, Neta was valued at around 6 billion yuan (approximately $828 million) earlier this year, a relatively small sum for Toyota, which held over $130 billion in cash and equivalents at the end of 2024.

      It’s important to note that Xu Yiming, Toyota’s brand communications director in China, has stated that he is unaware of any interest from the company in acquiring Neta, according to CarNewsChina.

      If Toyota decides to proceed with the acquisition, it would not only obtain Neta’s assets and technology but also gain valuable insight into the competitive landscape of the Chinese market. In 2024, Neta sold 64,500 vehicles, but by January of this year, that number had plummeted to just 110, reflecting the severity of the situation.