Neta Auto, a Rising Star?
On November 8, the leading battery maker CATL signed a strategic agreement with Neta Auto to collaborate on technology development and battery supply. As part of the deal, CATL will participate in Neta’s Series D2 funding round. It is in fact CATL’s second investment in auto OEMs this month after Avatar Technology, subsidiary of Changan Auto.
On October 19, the security software company Qihoo 360 announced the plan to invest RMB 2.9 billion in Neta Auto as 360 seeks new growth with network security technologies in the automotive industry.
On August 25, Neta and Huawei inked agreement to jointly develop key technologies starting with Neta S, which will be equipped with Huawei’s MDC computing platform and LiDARs. Neta is the fifth OEM that Huawei has built partnerships with after BAIC Arcfox, SERES, Changan and GAC NE.
So who is Neta, the name that has been associated with three giant companies lately? It is the brand under HOZON Auto, covered briefly in Tesla Inspired List in China is Longer than Nio, Li Auto and XPeng.
Story behind the name
Neta’s Chinese name (Nezha in pinyin) is after a heroic character in ancient Chinese mythology and literature. In one version of the stories, Nezha’s mother gave birth to a ball after being pregnant for three and half years. The ball got split and Nezha jumped out as a boy instead of an infant, being able to speak and walk immediately. Nezha was often riding a powerful weapon called Wind Fire Wheels and fought many battles.
Sales
HOZON was founded in 2014. Its first production EV rolled off assembly line in July 2018 along with the launch of the Neta brand. It has delivered over 70,000 vehicles in total. Neta’s annual sales volume in 2018, 2019 and 2020 were 1,206, 11,212 and 15,091 respectively. This year it has reached 49,534 till now. In the passing October, Neta’s monthly vehicle sales went over 8,000 for the first time (8,107 vehicles to be exact), №2 among new generation OEMs (№1 being Xpeng with 10,138 vehicles).
Neta owns a production plant in Tongxiang, Zhejiang province. The second one in Yichun, Jiangxi province is supposed to be ready for production.
Models
Neta has introduced four EV models so far — two are currently available on the market and one is expected in 2022.
Neta N01 is an electric subcompact crossover launched in 2018 as the company’s very first EV model. There was a 2020 version of Neta N01 launched in 2019. The price of N01 ranges from RMB 66,800 to 79,900 after subsidies.
Neta U is an electric subcompact crossover that went on sales in 2020 with a price range of RMB 139,800 to 199,800 after subsidies. Neta U Pro became available earlier this year with multiple upgraded features including L2 driver assist system but lowered price range of RMB 99,800 to 159,800 after subsidies.
Neta V is an electric subcompact crossover that became available since November 2020 with the price range of RMB 59,900 to 75,900 after subsidies. Neta V Pro just went on sales in November this year with two versions priced at RMB 76,900 and 80,900 after subsidies. Besides upgraded features and services, V Pro is equipped with the safety protection system from Qihoo 360.
Neta S is an electric mid-sized sedan unveiled at Auto Shanghai 2021 and it is expected to hit the market in Q4 of 2022. It is claimed that Neta S has a range of 1,100 km and 800 km on the extended and regular versions respectively. As mentioned at the beginning, it is a co-development with Huawei offering L4 autonomous driving features.
Neta has developed two vehicle platforms for EVs: the HPA compact platform and the HPC medium and large platform. The plan is to launch a new model every year and upgrade a model every other year based on the two platforms.
Although the company is committed to owning key technologies including electric power system, smart cockpit and smart driving, Neta’s co-founder mentioned in a speech that it wouldn’t invest limited resources to develop parts like chips, sensors or operating system.
Neta has secured a total of RMB 13.25 billion in investment so far, according to public announcement. Compared to what Nio, Li and Xpeng has got, it is a small amount. Recently, Neta was reported to be seeking a public listing in Hong Kong for further funding.
Overall, Neta offers cost-effective EVs towards the lower-end market, which is often considered a massive opportunity. It includes tier 2, 3, 4, and 5 cities domestically and Southeast Asian countries like Thailand internationally. However, this will also be a fiercely competitive segment in 2022 where EV makers like Tesla and Nio plan to enter next.
Can Neta come out ahead after its birth struggle, as in the story of Nezha?
