It is reported that Nezha Automobile faces numerous challenges in its bankruptcy reorganization. As of the end of August, 1631 creditors have declared their claims, with a total amount of 26.58 billion yuan, while the company's book balance is only about 15.4591 billion yuan. At the same time, the company owes approximately 460 million yuan in wages and compensation to more than 5000 employees. At present, Nezha Automobile's cash on paper is almost depleted, and its assets and liabilities are severely imbalanced.
Nezha Motors currently has over 400000 car owners, but recently many car owners have received "network disconnection" notifications, and the car's infotainment system services cannot be guaranteed. How to protect the rights and interests of car owners has become an important issue in the restructuring process. The manager stated that in order to maintain operations, the company is negotiating with suppliers to maintain the operation of the vehicle service system and adjusting the unpaid employee wages.
Despite the difficulties faced by Nezha Motors, there is still a turning point in its restructuring process. During the pre recruitment stage of potential investors for the reorganization of Hezhong New Energy, more than 70 companies have registered to participate. Nezha Automobile has scarce resources such as domestic dual qualification production licenses and overseas channels, which may be what investors value.
Nezha Motors once became the sales champion of new forces, but in recent years, its sales have gradually fallen behind. In 2022, Nezha delivered 152100 new cars, but its sales declined by 16% in 2023 and a year-on-year drop of 40% in 2024. Its parent company, Hezhong New Energy, has accumulated losses of over 18 billion yuan from 2021 to 2023.
The dilemma of Nezha Automobile is the result of multiple intertwined factors. In the early days, we relied on a low price strategy to increase our sales, but failed to establish a brand advantage when transitioning to the mid to high end market. The proportion of R&D investment has been consistently below 15%, which is lower than the industry average, resulting in slow progress in core technology areas. After the intensification of market competition, the survival space of Nezha Automobile has been further squeezed, while financing obstacles and internal management turmoil have also exacerbated its business crisis.
At present, the restructuring of Nezha Automobile not only concerns the resolution of billions of debts, but also directly affects the protection of the rights and interests of over 400000 car owners. If basic after-sales and networking services cannot be provided to car owners, their brand reputation will further deteriorate. In the future, whether Nezha Automobile can successfully break through depends on its ability to balance debt resolution, product iteration, and service delivery.
