Key Facts
• Nezha Auto faced financial collapse in late 2024 due to cash shortages.
• On June 13, 2025, a court accepted a bankruptcy filing by creditor Yuxing Advertising.
• Yuxing Advertising claims unpaid dues exceeding 1 million yuan (~$200,000).
• Zhejiang Province’s Jiaxing Intermediate People’s Court appointed Zicheng Law Firm as administrator.
• Nezha Auto announced self-restructuring under court supervision with government support.
• The company seeks global investors to resume production and develop new EV models.
• Plans include hiring a new CEO with global automotive experience.
• Nezha Auto’s debt is estimated at nearly 10 billion yuan (~$2 billion).
• Employees reported unpaid wages and severance from layoffs in late 2024.
• A video of employees confronting founder Fang Yunzhou over unpaid wages surfaced online.
• Nezha Auto’s Thai market operations began in 2022, with a local assembly plant launched in 2023.
Summary
Nezha Auto, a Chinese electric vehicle (EV) startup, has entered bankruptcy proceedings following severe financial difficulties that surfaced in late 2024. On June 13, 2025, a Zhejiang court accepted a bankruptcy filing from creditor Yuxing Advertising, citing unpaid dues of over 1 million yuan (~$200,000). The company, with debts nearing 10 billion yuan (~$2 billion), announced plans for self-restructuring under court supervision and government support. Nezha Auto aims to attract global investors to restart production, develop new EV models, and expand overseas markets. Despite these efforts, skepticism remains about the feasibility of its recovery plans. The company has faced operational disruptions, including unpaid wages, halted production lines, and mass layoffs. A video showing employees confronting founder Fang Yunzhou over unpaid wages has further highlighted internal turmoil. Nezha Auto’s Thai market, launched in 2022, remains a key focus, with a local assembly plant operational since 2023. However, the company’s future remains uncertain amid ongoing financial and operational challenges.
