Europe, the United States and Japan have always been at the forefront of the automobile industry. Their cutting-edge technology has always been one step ahead of the rest of the world, but over the past few decades a number of new players have emerged and shaken the foundations of the market. First of all, the Koreans with their attractive and good value for money cars. Today, with the advent of the electric car, it is China that seems to be emerging, even if it just lift the carpet a little to realize that not all that glitters is gold. Some businesses have a hard time.
In barely a decade, China has completely transformed its automobile fleet. Over the past ten years, the market share of electric and plug-in cars has become the largest in the country. How ? Through hard work, major projects, rapid and constant evolution and, above all, a commercial offer that is based around popular prices. In China, an electric car is significantly cheaper than anywhere else in the world. We are not the only ones to say this, there are many examples, such as the Chinese CUPRA Tavascan signed by the new Volkswagen company.
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In China, more than 150 different brands are fighting for a share of the huge automobile market. With more than a billion inhabitants, China has become the main market for many European brands, such as Mercedes. In 2023, the Chinese market represented 36% of the German brand's total sales. Dependence on Europe is total and more and more Chinese brands are deciding to pack their bags and try their luck abroad in the face of the glut of supply that many experts have been warning about since. a while. There are too many electric cars. There is too much commercial supply and in the face of such a war, some cannot survive, as is the case of Neta.
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It's entirely possible that you don't know, that's normal. Neta was founded in 2018 by Hozon Auto as a manufacturer of general, attractively priced electric vehicles. This strategy allowed it to overtake other more popular manufacturers like Li Auto, NIO and Xpeng in 2022with an annual volume of more than 150,000 cars. At that time, seduced by its notoriety, Neta decided to move upmarket by launching technically advanced models at a higher price. Its current range consists of six vehicles: Neta Aya (Neta V II), Neta X, Neta GT, Neta L, Neta S and Neta S Hunting.
Much of this production has gone to car-sharing services, which have not been well received in China. The problem is that by raising prices, the company has lost much of its appeal and sales have fallen significantly over the past two years. Between January and September 2024, Neta delivered 53,853 units, or 30% of its annual target. Given the weak business, Chinese sources say that the Neta factory in China, with a production capacity of 200,000 cars per year, ceased operations in the first part of this month. There are also reports of reductions in workers' salaries. Neta's future is bleak.
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Overall, Neta suffers from low sales volume in China, but on the other hand, overseas sales could become automaker's lifeline. Neta has entered several markets in Central Asia, Southeast Asia, Latin America and South Africa. It also plans to establish itself in Europe. However, EU tariffs could have a significant impact on these plans. Neta's example shows once again that while China dominates the electric vehicle market with its launches and technology, there is no room for so many different brands and models in the same range. price.
