Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
CCTV: 'Neta' Logs RMB18.3B Loss in Car Mfg Over 3 Yrs; Investment Promotion Involution Wreaks Industrial Homogenization
Recommend 28 Positive 39 Negative 33 |
||||
|
||||
|
CCTV's "Focus Report" recently aired a report titled "Investment Promotion, or Investment 'Injury'?". Reporters visited the Economic Development Zone in Yichun, Jiangxi Province, where an automobile manufacturing plant spanning more than 600 mu once carried the local government's ambition to build an automotive industry cluster, but is now left with empty workshops and dust-covered production lines. Hozon New Energy Automobile, the parent company of NEV brand "Neta", recorded a cumulative net loss of as much as RMB18.3 billion from 2021 to 2023, according to data. The company lost more than RMB80,000 on average for each vehicle sold. Starting from 2024, Neta suspended production at three manufacturing bases. In 2H25, Hozon New Energy was subjected to a bankruptcy reorganization application filed by creditors. Hu Zhaohui, Deputy Director-General of the Department of Structural Reform at the National Development and Reform Commission, said some local governments have distorted industrial development funds into tools for attracting investment, providing implicit subsidies through so-called "drawer agreements". This has led to involution-style race-to-the-bottom competition in investment promotion, exacerbating market fragmentation and industrial homogenization, and undermining the development of a unified national market. HK-listed automakers were subdued this morning. GEELY AUTO (00175.HK) slumped 5.1% to HKD23.64. BYD COMPANY (01211.HK) slid 4.3%. XPENG-W (09868.HK) tumbled 6.3%. LEAPMOTOR (09863.HK) shed 6%. Auto-translated by AI AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
