Nezha Auto, which once claimed the top spot in sales among new automotive players, is now entangled in bankruptcy restructuring. Between 2021 and 2023, its parent company, Hozon Auto, suffered a staggering net loss of 18.3 billion yuan, translating to an average loss exceeding 80,000 yuan for each vehicle sold. Despite enjoying preferential policies and receiving investments from state-owned enterprises in various regions, such as Yichun in Jiangxi Province and Nanning in Guangxi Province, the company has been unable to turn its fortunes around. In 2022, Nezha Auto led the new-force rankings with 152,100 units sold. However, its sales subsequently nosedived, largely due to issues related to product positioning. Since October 2024, Nezha Auto has been plagued by a series of negative news, including layoffs, salary reductions, and overdue contract payments. In June 2025, the Jiaxing Municipal Intermediate People's Court accepted its bankruptcy restructuring case, formally initiating judicial proceedings for Nezha Auto's bankruptcy restructuring.