Latest news with #Neta
Zawya
28-05-2025
- Automotive
- Zawya
China auto market price war stokes fears of industry shake-out
An intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Shares of China's largest automakers sank Monday after Chinese electric-vehicle giant BYD offered fresh discounts across more than a dozen models, and an executive at another car company fretted openly about the country's deepening price war. BYD's moves cut the starting price of its cheapest model, the battery-powered Seagull hatchback, to 55,800 yuan ($7,765), from nearly $10,000. The BYD price cuts, along with other developments, signal a potential tipping point, where weaker players can no longer sustain deepening losses from the downward spiral on prices, said Tu Le, managing director of Sino Auto Insights, an advisory firm. 'This points to a bloodbath later this year,' he said. 'This could be the first domino that would finally put pressure on weaker players -- startups like Neta and Polestar -- that have been teetering.' On Friday, the chairman of Great Wall Motors, Wei Jianjun, warned that China's auto sector was in an unhealthy state, with pricing pressure hammering the bottom lines of car companies and suppliers. He even drew a parallel to Evergrande, the Chinese property developer that was liquidated last year after a major debt crisis. "Now, Evergrande in the automobile industry already exists, but it has not collapsed," he told Sina Finance in an interview. In another sign of stress in the market, Reuters reported that Chinese commerce regulators are examining a growing phenomenon that has also strained the industry: sales of 'used cars' that are essentially new cars with zero miles. The tactic is seen as a way for automakers and dealers to hit aggressive sales targets, a person familiar with the matter told Reuters. The Hong Kong-listed shares of BYD Co Ltd closed 8.6% lower on Monday, while Geely Auto fell 9.5%. Others, such as Nio and Leapmotor, closed between 3% and 8.5% lower. A slew of startup companies have piled into China's car market over the past decade, drawn by the burgeoning electric-vehicle sector. The market has grown crowded with cut-throat price competition and most companies sustaining heavy losses. Of the 169 automakers operating in China today, more than half have less than 0.1% market share, according to data from research firm Jato Dynamics. The crowded field is reminiscent of the U.S. auto sector in the early 20th century, when more than 100 companies vied with big players such as Ford, before the industry consolidated. Le said the price war has lasted roughly three years. Car makers once enjoyed a premium for advanced features such as driver-assistance systems that take control of steering and braking in certain situations, but now more have been offering these as part of the sticker price. Last week, China's state planner cautioned that competition in some industries was getting too heated, with some companies even selling their cars below cost, disrupting fair competition. On Friday, Wei, the Great Wall chairman, warned the prolonged price war was harming the automotive supply chain. Some suppliers are at risk of going under because of pressure from car companies to lower their prices, he said. "Some products have been reduced from 220,000 yuan to 120,000 yuan in the past few years,' he said, without naming companies. 'What kind of industrial products can be reduced by 100,000 yuan and still have quality assurance?' Still, predictions of consolidation in China's car market have gone on for years, but the field has only grown, said Michael Dunne, a consultant who closely follows the China auto industry. 'BYD's price cuts will drive out some of the weaker players,' he said. 'But for every casualty here comes a new Xiaomi or Huawei barreling into the arena." (Reporting by Norihiko Shirouzu; Editing by Mike Colias and David Gregorio)
Reuters
27-05-2025
- Automotive
- Reuters
China auto market price war stokes fears of industry shake-out
May 27 (Reuters) - An intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Shares of China's largest automakers sank Monday after Chinese electric-vehicle giant BYD < opens new tab> offered fresh discounts across more than a dozen models, and an executive at another car company fretted openly about the country's deepening price war. BYD's moves cut the starting price of its cheapest model, the battery-powered Seagull hatchback, to 55,800 yuan ($7,765), from nearly $10,000. The BYD price cuts, along with other developments, signal a potential tipping point, where weaker players can no longer sustain deepening losses from the downward spiral on prices, said Tu Le, managing director of Sino Auto Insights, an advisory firm. 'This points to a bloodbath later this year,' he said. 'This could be the first domino that would finally put pressure on weaker players -- startups like Neta and Polestar -- that have been teetering.' On Friday, the chairman of Great Wall Motors, Wei Jianjun, warned that China's auto sector was in an unhealthy state, with pricing pressure hammering the bottom lines of car companies and suppliers. He even drew a parallel to Evergrande, the Chinese property developer that was liquidated last year after a major debt crisis. "Now, Evergrande in the automobile industry already exists, but it has not collapsed," he told Sina Finance in an interview. In another sign of stress in the market, Reuters reported that Chinese commerce regulators are examining a growing phenomenon that has also strained the industry: sales of 'used cars' that are essentially new cars with zero miles. The tactic is seen as a way for automakers and dealers to hit aggressive sales targets, a person familiar with the matter told Reuters. The Hong Kong-listed shares of BYD Co Ltd closed 8.6% lower on Monday, while Geely Auto < opens new tab> fell 9.5%. Others, such as Nio ( opens new tab and Leapmotor ( opens new tab, closed between 3% and 8.5% lower. A slew of startup companies have piled into China's car market over the past decade, drawn by the burgeoning electric-vehicle sector. The market has grown crowded with cut-throat price competition and most companies sustaining heavy losses. Of the 169 automakers operating in China today, more than half have less than 0.1% market share, according to data from research firm Jato Dynamics. The crowded field is reminiscent of the U.S. auto sector in the early 20th century, when more than 100 companies vied with big players such as Ford, before the industry consolidated. Le said the price war has lasted roughly three years. Car makers once enjoyed a premium for advanced features such as driver-assistance systems that take control of steering and braking in certain situations, but now more have been offering these as part of the sticker price. Last week, China's state planner cautioned that competition in some industries was getting too heated, with some companies even selling their cars below cost, disrupting fair competition. On Friday, Wei, the Great Wall < opens new tab> chairman, warned the prolonged price war was harming the automotive supply chain. Some suppliers are at risk of going under because of pressure from car companies to lower their prices, he said. "Some products have been reduced from 220,000 yuan to 120,000 yuan in the past few years,' he said, without naming companies. 'What kind of industrial products can be reduced by 100,000 yuan and still have quality assurance?' Still, predictions of consolidation in China's car market have gone on for years, but the field has only grown, said Michael Dunne, a consultant who closely follows the China auto industry. 'BYD's price cuts will drive out some of the weaker players,' he said. 'But for every casualty here comes a new Xiaomi or Huawei barreling into the arena."
The Star
05-05-2025
- Automotive
- The Star
Roundup: Chinese EV brands attract visitors at e-mobility conference in Kenya
NAIROBI, May 5 (Xinhua) -- The third edition of the annual E-Mobility Stakeholders Conference and Expo kicked off on Monday in Nairobi, the capital of Kenya, with Chinese electric vehicles (EVs) drawing considerable attention from attendees. Lawrence Maringa, a 41-year-old car enthusiast, told Xinhua on Monday that he had seen electric vehicles on television, but had never sat or ridden inside green modes of transportation before. "The Chinese models look very advanced, and I am surprised at how spacious and quiet they are," Maringa said as he admired the Chinese automotive brand Neta, which is distributed by Moja EV Kenya, a motor dealer. Josephine Wanja, marketing manager at Moja EV, told Xinhua that visitors are especially impressed by the comfort, performance, and technology packed into the Chinese e-vehicle models, which retail at prices that make sense for the local market. Wanja noted that increased fuel prices and environmental awareness are pushing more Kenyans to consider electric vehicle options. The two-day event brought together more than 200 stakeholders from government, development agencies, and private sector innovators to explore opportunities for scaling up EVs, charging infrastructure, and policy frameworks. Terry Nderitu, head of business at e-PureRides, a company that imports the Chinese motor brand Dongfeng, said many visitors, including motorcycle taxi operators, fleet managers, and city dwellers, came to the expo looking for practical solutions to daily transport needs. Nderitu noted that Chinese EVs represent not just innovation but accessibility, and are a practical step toward sustainable mobility. Samuel Odindo, a ride-hailing driver, said he was considering switching to an electric vehicle because of its lower operational costs. Winnie Njenga, who is a sales executive at Loxea Kenya, a motor dealer that distributes the Chinese vehicle brand BYD, noted that for many visitors at the exhibition, it was their first direct interaction with EVs. Njenga revealed that Chinese brands stand out not only for their modern aesthetics but also for their affordability, suitability to local conditions, and ability to reduce greenhouse gas emissions. Hezbon Mose, president of the Electric Mobility Association of Kenya, said Chinese electric vehicles are helping bridge the gap between innovation and accessibility in Africa's emerging EV market. Brian Waema, sales and information officer at Autopax, which imports the Chinese brand TailG electric motorbike, noted that potential clients are always amazed at the quietness and power of electric motorcycles. Claire Njoki, a lawyer, remained optimistic that electric cars will become common on Kenyan roads, given the speed at which Chinese EV manufacturers are engineering automobiles in terms of reliability, spare parts, and after-sales service.
Business Times
24-04-2025
- Automotive
- Business Times
Cars didn't arrive after months – so Singapore dealer for China EV brand Neta closed: sources
[SINGAPORE] The abrupt closure of Evology Automobile – the dealer/distributor for China automotive brand Neta – earlier this month happened because expected vehicle stock was not delivered, The Business Times learnt. Industry sources indicated that Evology management decided not to continue operations when its initial shipment of Neta cars had yet to materialise after months of delay. The number of vehicles ordered and the total cost is not known. Evology opened its Neta showroom at One Commonwealth this January, but by Apr 12 – as first reported by BT – had closed it without warning. Incorporated in June 2024, Evology announced in October that it had been appointed as distributor and dealer for Neta in Singapore, with the first batch of vehicles expected to arrive in November. In January, there were reportedly 52 orders for its vehicles in Singapore. By the end of that month, Neta registered a total of four units here – but none have been added since. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Neta and Evology have not replied to BT queries on the closure. Neta, an electric vehicle (EV) brand under Shanghai-based manufacturer Hozon New Energy Automobile, has faced serious challenges since late 2023. China media reported that the company ceased car production in November. In March, the brand was reportedly on the verge of bankruptcy after an attempted funding round failed to reach its target of four billion yuan (S$721.4 million). In mid-April, dealers in China staged a protest at the gate of the company's factory in Zhejiang, saying that it failed to compensate them for operating losses since September 2024. Amid mass layoffs and cost-cutting measures, Neta was still failing to deliver vehicles and address supplier claims. In Singapore, Evology's showroom space at One Commonwealth has since been taken up by Vertex Automobile – the dealer/distributor for China carmaker Chery and its sub-brands Omoda and Jaecoo – and is expected to open in early May. Vertex Automobile, distributor for Chery automobiles, now occupies the space of the former Neta showroom at One Commonwealth. PHOTO: DERRYN WONG, BT Vertex and Evology shared an aftersales service centre, located at 3 Ubi Road 4, when the latter was still in operation. In response to BT's queries, a Vertex spokesperson said the addition of a location in the west of Singapore is timely and appropriate for the company, which currently has one showroom in the east – also at 3 Ubi Road 4. There is no formal business relationship between Evology and Vertex, although BT understands that Vertex owner David Sng and Evology director Lawrence Lim are friends, and Sng is taking up the lease partly as a favour to Lim. Evology was not Singapore's first Neta dealership. In 2023, the original appointment went to Vincar, a family-run Hong Kong-listed automotive group and current dealer/distributor for another Chinese car brand, GAC Aion. Evology made its appointment public in 2024. Industry sources said Neta appointed Evology as a second dealer without Vincar's knowledge. Vincar representatives told BT that it did not start selling Neta cars due to concerns about the stability of the brand and its ability to deliver cars, as well as the strength of its aftersales support.
Yahoo
29-01-2025
- Automotive
- Yahoo
Hozon opens first Neta outlets in Brazil, Cambodia
Chinese battery electric vehicle (BEV) manufacturer Hozon Auto announced this week it has officially opened its first Neta Auto sales outlets in Brazil and Cambodia, as the automaker stepped up its global expansion strategy to offset fierce competition in its home market. The struggling BEV manufacturer said it aims to double its overseas sales in 2025 from around 30,000 units last year, which it sold through over 180 sales outlets located mainly in South-east Asia and Latin America. The company said it aims to have ten sales outlets in operation in Brazil by the end of the first quarter of 2025, following the unveiling of the Neta Aya and Neta X at the end of last year. Earlier this month Neta opened a new sales outlet in the Indonesian city of Bekasi and aims to have 30 sales outlets in operation in the country by the end of 2025. Hozon's global sales fell by around 27% to an estimated 100,000 vehicles last year, leaving the company struggling with mounting losses and in search of fresh funding. The company launched a cost-cutting programme last year to improve efficiency and minimise losses. Hozon laid off around 400 workers at its Thai operations at the end of last year, after its local sales plunged by 45% as the number of Chinese BEV manufacturers entering this market continued to increase. "Hozon opens first Neta outlets in Brazil, Cambodia" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
