Hozon New Energy Automobile Company, the parent company of Chinese battery electric vehicle (BEV) startup Neta Auto, announced at its shareholder meeting this week that it plans to raise up to CNY4.5bn (US$616m) in an E-Series funding round. The leading investor is expected to provide up to CNY3bn of the funding, according to reports.

Hozon’s global sales fell by 27% to an estimated 100,000 vehicles in 2024, while mounting financial losses have forced the struggling automaker to launch a far-reaching cost-cutting programme to improve its operating efficiency. The company confirmed it has reduced its monthly operating expenses by over 50% since it began its cost-cutting programme last year and said it expects to become profitable in the next 2-3 years.

One of its key targets is to generate half of its sales overseas, as it looks to continue to diversify away from the highly competitive Chinese market. Last month the company officially opened its first Neta Auto sales outlets in Brazil and Cambodia, with ten outlets expected to be operational in Brazil by the end of the first quarter of 2025.