Overview

In a stunning turn of events, Chinese electric vehicle (EV) brand Neta has closed its only showroom in Singapore less than three months after its much-anticipated opening. Located at One Commonwealth, the showroom, launched by local distributor Evology Automobile in January, has left potential customers and industry observers questioning Neta's viability in the competitive Singaporean market.

Closure Discovery

During our visit over the weekend, we discovered the showroom mysteriously shuttered, with no employees in sight and no vehicles on display. Despite being within operating hours, there were no explanations provided for the abrupt closure, leaving consumers in the dark. Attempts to reach out to Evology’s hotline were unsuccessful, and their social media profiles remain eerily quiet regarding this unsettling development.

Initial Launch and Expectations

Neta's foray into Singapore commenced with the launch of two EV models—the Neta X and Neta Aya—on January 9. Initial reports indicated a promising start, with 52 vehicle orders taken at the launch event. However, the reality now looks grim, as Neta has only registered four vehicles in the country to date, with two registrations occurring in late 2024 and two more in January 2025, as per Land Transport Authority data.

Company Background

Owned by Shanghai-based Hozon New Energy Automobile, which has received significant backing from state-owned capital firms amounting to approximately 5 billion yuan (around S$923.6 million), Neta is focused on appealing to the mainstream audience. Yet, its struggle in Singapore may reflect deeper issues faced in the home market of China.

Financial Struggles

Recently, Neta has been battling a severe downturn, with reports indicating that the company stands on the brink of bankruptcy after a critical funding round of about 4 billion yuan fell through. January sales figures reveal a staggering decline of 98% year-on-year, underscoring the brand's financial struggles. Moreover, production was halted at its Zhejiang factory in late 2024, and significant layoffs followed as sales plummeted.

Industry Outlook

Experts predict a major shake-up within the Chinese automotive industry, identifying a trend toward consolidation where only the strongest players will survive. According to S&P Global analysis, the industry may witness the exit of numerous smaller competitors by 2030, leaving larger firms like BYD, GAC, and XPeng to dominate the landscape.

Conclusion

With Neta now facing existential threats in both international and domestic markets, the future of the brand remains uncertain. Will Neta rise from the ashes, or is this the final chapter for a once-promising electric vehicle contender? Only time will tell, but for now, the shocking closure of its Singapore showroom casts a long shadow on its aspirations. Stay tuned for further developments in this unfolding story!