Hozon will enter bankruptcy proceedings

According to local reports, Chinese battery electric vehicle (BEV) manufacturer Zhejiang Hozon New Energy Automobile Company has officially concluded bankruptcy proceedings.

Shanghai-based advertising company Shanghai Yuxing Advertising Company, one of Hozon’s creditors, filed a petition asking for a bankruptcy review of the company a few weeks ago as the automaker continued to struggle to meet its economic commitments both at home and abroad. The court ruled clearly in favour of the bankruptcy petition and appointed an administrator to oversee the restructuring with the aim of rehabilitation of the business.

Automakers had been cutting operating costs significantly for over a year, but this clearly wasn’t enough to offset their home market and decline in sales overseas. Hozon wanted to raise additional cash in this year’s Series E fundraising round, but this didn’t happen anytime soon. A recent report from China suggests that many Hozon-Neta dealers in Shanghai have already stopped operations.

Hozon is one of the first famous casualties of a brutal price war in China’s increasingly overcrowded new energy vehicle (NEV) market in the past two years, increasingly dominated by large companies such as BYD and Geely.

“Hozon enters bankruptcy proceedings” was originally created and published Just automatica brand owned by GlobalData.

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