News has emerged that Japanese auto giant Toyota could be eyeing an acquisition of Neta Auto to bolster its China market push. The move not only could aid its own growth but also ease the financial struggling Chinese company.
The possibility has been reported by Kuai Technology on May 12 that said that Toyota is assessing the possibility of acquiring Neta Auto. The latter has been making news in recent times fore its financial struggles.
Launched in 2014, the brand is currently facing its worst crisis since mid-2024. The condition has been so severe that its production has been halted and employees were laid off in mass. It’s currently on Chinese government funding to stay afloat. The company only could reopen back in in early January, but couldn’t resume production due to the lack of parts.
The company also failed to receive investment of 414 million USD from a “BRICS” state.
Currently, the company is valued at 828 million USD, an 80% fall from 5.8 billion USD in 2023. The company only managed to sell 110 cars in January 2025.
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Toyota eyes Neta acquisition
Toyota could proceed to acquire Neta in a major boost to the latter. This would enable the Japanese auto maker to leverage local knowledge and hit its EV footprint in China.
Though the rumors came out, there’s not been a concrete information on this. Toyota China’s Brand Communications Director, Xu Yiming, also stated “We haven’t heard anything about this!”
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If the deal pulls through, it could be a major win for both companies and even more so for Neta Auto.