- Neta Motors: From Pinnacle to Dire Crisis
- Stumbling Expansion in the GCC Amid Support Concerns
- The Risks Facing Neta Owners in the GCC
- How Should Buyers Choose a Reliable EV Brand?
Neta Motors, a rising star in China's electric vehicle industry, now finds itself in a spiraling crisis that threatens its footprint, particularly in the GCC region, a cornerstone of its global expansion. Following promising developments like strategic agreements in the UAE, the brand is now battling factory shutdowns, a collapse in sales, and the exit of top executives, raising serious concerns among EV buyers in Saudi Arabia and the Emirates.
Neta Motors: From Pinnacle to Dire Crisis
Founded in 2014 as a subsidiary of Hozon New Energy, Neta Motors gained traction through aggressive pricing and competitive features, led by models like the Neta V and Neta U. By 2022, it had sold over 152,000 units, becoming a leader among China’s new EV manufacturers and achieving a valuation near 250 billion yuan (124 billion AED).
However, the momentum slowed dramatically by 2024 as sales fell to just 64,500 vehicles. The company racked up over 18 billion yuan (8 billion AED) in losses over three years, while restructuring attempts and product expansions failed to halt the downturn. With unpaid staff, after sales collapse, and supplier protests, Neta’s operations neared a standstill across key markets.
Stumbling Expansion in the GCC Amid Support Concerns
Despite its domestic challenges, Neta Motors pursued regional expansion. In late 2024, it partnered with EIH Automotive & Trading as its exclusive UAE distributor, planning to introduce models such as the Neta X, GT, S, U-II, and AYA with pricing starting at 126,800 yuan (63,379 AED).
Neta also announced plans for an R&D center and assembly facility in Abu Dhabi's SAVI smart mobility hub. However, by March 2025, only 110 vehicles were delivered domestically, and numerous service centers had shuttered. This raised alarms over parts availability, software support for smart features, and Neta’s capability to honor commitments in the region.
The Risks Facing Neta Owners in the GCC
As Neta Motor plunges deeper into crisis, vehicle owners in Saudi Arabia and the UAE are grappling with growing concerns and uncertainty. Several models have broken down due to critical component failures, with no available replacements or service centers able to provide support. This comes alongside the closure of showrooms and the suspension of after sales services in key markets.
The situation is further complicated by a shortage of spare parts, leaving owners at risk of complete vehicle shutdown or restricted usage. If the crisis continues, the resale value of Neta cars could drop sharply, placing unexpected financial strain on their owners.
How Should Buyers Choose a Reliable EV Brand?
To avoid such experiences, GCC based buyers are advised to choose EV brands with official, authorized dealers offering professional after sales support. Priority should be given to manufacturers with proven global success and strong financial standing, such as BYD and MG. Buyers should also evaluate the brand's track record in the Chinese market, including production capacity and leadership stability.
Despite Neta’s recent efforts to secure funding and delay investment rounds, the ongoing crisis serves as a warning for anyone entering the EV space. Brand trust and institutional stability must take precedence over design or technical features when making a purchase decision.
