Hozon’s Latest EV: The Neta S Launch and Its Impact on Price Competition and Overseas Expansion

Hozon Unveils the Neta S: A New Player in the EV Market

Hozon New Energy Automobile, the Chinese start-up behind the Neta brand of electric vehicles (EVs), has introduced the Neta S, a wagon-style vehicle with an extended-range option capable of reaching 1,200 km on a single charge. The vehicle is forecasted to start at 159,900 yuan (US$22,447), with deliveries commencing in September. Hozon aims to challenge Geely’s premium EV unit, Zeekr, which has its entry model priced at 259,000 yuan.

CEO Zhang Yong emphasized that the Neta S is a strong contender in the market, offering superior performance and experience by utilizing advanced materials and the latest technologies. The extended-range version, featuring a small internal-combustion engine for additional power when necessary, will range between 169,900 and 179,900 yuan.

Strategic Market Positioning and Future Outlook

The Neta brand targets budget-conscious consumers in China, appealing to middle and low-income drivers seeking electric options over gasoline vehicles. With backing from notable investors, including Qihoo 360 Technology and Citic Securities, Hozon has raised 26.4 billion yuan in venture capital since its inception in 2014.

In July, Hozon reported delivering 11,015 vehicles, marking a 9.7% increase YoY, although the first seven months of 2024 saw total deliveries decline by 10.6% compared to the previous year. With an IPO application filed with the Hong Kong exchange, Hozon plans to use the anticipated US$1 billion in proceeds for accelerating its overseas growth, particularly in Thailand where it has already started assembling vehicles.

Hozon’s founder, Fang Yunzhou, recently reaffirmed their strategy to avoid price cuts in the face of intense domestic competition, favoring a focus on value enhancement through innovative product offerings.