Little-known Chinese EV startup outpaces NIO, Xpeng and Li Auto in July deliveries

August 1, 2022 0 Comments

A little-known Chinese EV startup surpassed big-name EV makers such as NIO, Xpeng and Li Auto in July deliveries.

From January to July, NETA delivered 77,200 vehicles, a year-on-year increase of 184.6%. In July alone, the startup delivered around 14,000 vehicles, up 133.5% year-over-year, making it the top emerging EV brand by deliveries.

This is the first time NETA has topped the list. Its monthly deliveries have remained in the top three on the list since the second half of last year.

NETA is owned by Zhejiang-based automaker Hozon Auto. Established in 2014, Hozon was co-founded by Beijing Sinohytec Co. Ltd. and Zhejiang Yangtze Delta Region Institute of Tsinghua University with a registered capital of nearly 630 million yuan, and it’s the 13th car company in China to get approval to produce new energy vehicles (NEVs)

With its competitive pricing, its compact SUVs “NETA V” and “NATA U” hit the mass market as soon as they were rolled out. After the subsidy, the starting price of “NATA U” is 123,800 yuan (US$18,290), and the starting price of “NETA V” is 79,000 yuan (US$11,671).

While NETA’s deliveries have grown, its losses have also widened. In 2020, the company’s revenue reached nearly 1.297 billion yuan, and its net loss is approximately 1.321 billion yuan; in 2021, its revenue is about 5.735 billion yuan, with a net loss of 2.908 billion yuan.

The Leapmotor came in second. The fledgling automaker delivered more than 12,000 vehicles in July, up more than 177% year over year. From January to July this year, Leapmotor delivered about 64,000 units.

In July, NIO sold 10,052 units, down 22.44% month-on-month, XPeng Motors delivered about 11,500 units, down 25% month-on-month, and Ideal Motors delivered 10,400 units, down 20% month-on-month.

Chinese media Cailian reported in Feb that Hozon Auto has launched plans to list in Hong Kong with sponsors CITIC Securities, CICC, Morgan Stanley and UBS. To date, there has been no update about the rumored IPO plan.

At the end of October last year, NETA announced the completion of an RMB 4 billion Series D1 financing round led by Qihoo 360, China’s largest cybersecurity company, which raised RMB 2 billion.

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