Is there a rumor that Neta owes its employees wages in China? Can Neta X still be purchased?

Many people choose a compact SUV for daily transportation, such as the Toyota Yaris Cross and Toyota Corolla Cross. Small SUVs not only have unique charm when driving in the city, but they are also particularly fuel-efficient.

However, now electric vehicles, which don’t require gasoline, have become a popular choice for urban commuting, such as the NETA X. The NETA X is priced lower than the hybrid versions of the Yaris Cross and Corolla Cross, offers more powerful performance, and feels lighter to drive in the city.

While the NETA X is an excellent vehicle, the news last month about NETA owing wages to employees in China has caused some concern. People are wondering if the NETA X is still a good buy. What if NETA goes bankrupt?

To be honest, the automotive industry in China is highly competitive. Currently, there are over 129 domestic car brands competing with each other. In the past four years, 24 car brands have gone bankrupt. Even multinational carmakers like Toyota, Honda, and Volkswagen are only able to sell cars at prices below normal.

Therefore, concerns about whether NETA might go bankrupt are understandable. However, this doesn’t mean I’m advising against purchasing the NETA X. The automotive market in China has stabilized, and those carmakers who have managed to survive are the ones with solid strength.

NETA’s strategy is clear. The brand offers excellent quality in the small car segment, making it highly suitable for urban use. Additionally, NETA has the backing of local government funding, such as from the Nanning government in China. On November 19, the Nanning Industrial Investment Automobile Group held a supplier conference to resume production and operations at NETA’s Nanning factory, ensuring NETA's overseas business.

Although small SUVs are not the mainstream choice in China, NETA has performed well in the Southeast Asian market. According to NETA, in September, it achieved a 16% market share, becoming the second-largest electric vehicle brand in terms of registrations in Thailand. In October, the NETA X became the top-selling pure electric SUV in Thailand.

Compared to the domestic Chinese market, NETA enjoys a 10-15% gross margin on its products in overseas markets, which is one of the reasons why local Chinese governments are keen to support NETA's international business.

In addition to the Nanning government, groups like 360 Group, CATL, Huading Capital, and local governments from places like Zhejiang Tongxiang and Jiaxing are all working together to provide funding, policies, and other support to help NETA overcome its current challenges.

This year, NETA has deployed three major factories in Thailand, Indonesia, and Malaysia. In January, the company signed an agreement with a Malaysian partner to establish its third overseas factory. In March, NETA’s eco-smart factory in Thailand began mass production, with an expected annual output of 30,000 vehicles. In April, the first batch of new cars rolled off the assembly line at NETA’s factory in Indonesia.

NETA has stated that by 2024, its sales network will cover 50 countries, and it will establish more than 500 overseas sales and service outlets.

With the help of various funds and the grounding of factories, it can effectively help NETA to achieve IPO and get out of the crisis. To accelerate the IPO process, NETA recently hired Peng Deng, former managing director of Goldman Sachs (Asia), to serve as the new CFO in charge of financial work.

Let's talk about the NETA X itself. NETA X is superior to Yaris Cross and Corolla Cross in terms of power and body size, and is also more advanced in technology.

The NETA X features a 15.6-inch floating central control screen and an 8.9-inch instrument panel, supports voice control in multiple languages, and offers online music and navigation. You can also control the vehicle via a mobile app, and it includes an L2-level driver assistance system. These features can be easily compared using the vehicle comparison tool on this website.

More importantly, as mentioned at the beginning of the article, the price of NETA X is about the same as Yaris Cross and Corolla Cross, or even cheaper. NETA X is a very good choice for urban travel.