Strategic Realignment: Neta Auto's Calculated Comeback in the EV Landscape

More than a month after its financial challenges surfaced, Neta Auto（哪吒汽车） has made promising strides in its self-rescue strategy. On March 25, the company announced a significant debt-to-equity conversion that signals a potential turnaround in its precarious business landscape.

source： Neta Auto

Debt Conversion and Supplier Support

In a move demonstrating remarkable financial engineering, Neta Auto has successfully negotiated a debt-to-equity swap with 134 core suppliers, totaling over 2 billion yuan. This initiative garnered support from industry heavyweights including CATL, Gotion High tech Co Ltd, and leading automotive suppliers.

The restructuring plan is strategically crafted:

· 70% of supplier debt will be converted to equity in Neta's parent company, United Auto

· The remaining 30% will be maintained as interest-free debt, to be repaid in cash

· Debt repayment is structured across 15 installments, commencing in May

This approach effectively brings these 134 core suppliers onboard as stakeholders in United Auto, creating a collaborative path to financial recovery.

International Expansion and Strategic Partnerships

Simultaneously, Neta Auto is aggressively pursuing international market penetration, particularly in Thailand. Key developments include:

· Securing a 10 billion Thai baht (approximately 2.15 billion yuan) financial credit line from NLTH Thailand

· Obtaining 500 million Thai baht (around 100 million yuan) in parts system support from Hong Kong's Soloro Technology

· Establishing a comprehensive five-year production partnership with local manufacturer BGAC

Thai Market Ambitions

Neta Auto's Thailand strategy is bold and clear:

· Target of 10,000+ retail units

· Aim to rank among the top two in Thailand's new energy vehicle market

· Plans to launch local production of its second model, Nezha X, in July

· Developing three nationwide battery preparation centers with KINTAI Automotive Industry

Critically, the partnership with BGAC positions Thailand as a potential Southeast Asian export hub, with projected export capacity potentially reaching 50% of production.

source: Neta Auto

Financial Outlook

While these strategic maneuvers demonstrate Neta Auto's resilience and innovative approach to crisis management, the company's long-term viability remains to be seen. The debt conversion and international expansion represent promising first steps, but sustained success will depend on execution, market reception, and continued strategic adaptation.

The company appears to have "come back to life," but the journey to fully realize its three-year operational blueprint is still unfolding.