Nezha Auto is facing a dire situation.

On the evening of December 6, Nezha Auto announced that Zhang Yong would no longer serve as CEO and would instead become a company consultant, with Nezha Auto founder and chairman Fang Yunzhou concurrently taking on the role of CEO.

This news has further compounded the difficulties faced by Nezha Auto, which was already experiencing sluggish sales.

Over the past two months, Nezha Auto has been mired in rumors of a capital chain rupture, with social media repeatedly reporting large-scale salary cuts, work stoppages, and production reductions. Currently, Nezha Auto's information is no longer visible on sales charts.

However, this is just the tip of the iceberg regarding Nezha Auto's current situation.

Nezha Auto's heyday was in 2022, when it became the top-selling new energy vehicle brand among emerging automakers.

Data shows that from 2020 to 2022, Nezha Auto sold 15,091, 69,674, and 152,073 vehicles, respectively, with year-on-year growth rates of 51%, 362%, and 118%, making it a dazzling presence among emerging automakers.

However, this moment of glory was fleeting.

Since then, Nezha Auto's sales have been on a downward trend. In 2023, Nezha Auto's annual terminal cumulative sales fell by 16% to 127,500 vehicles, only half of its annual sales target. This sales figure also placed Nezha Auto at the bottom of the sales rankings among emerging automakers.

This trend seems to have worsened in 2024.

So far, Nezha Auto has not released sales figures for two consecutive months. The cumulative sales for the first three quarters of 2024 were only 85,900 vehicles, a year-on-year decrease of 12.1%. While I cannot make bold predictions, it is certain that Nezha Auto will not achieve its sales target of 300,000 vehicles set at the beginning of this year.

As I mentioned in previous articles, Nezha Auto's current situation is due to multiple factors.

Firstly, Nezha Auto failed to effectively bridge the gap between old and new product lines, leading to market confusion and consumer distrust. Secondly, the high pricing of new products, marketing strategies, and management issues have severely constrained the brand's development.

In addition, financial issues have always been a problem that Nezha Auto has had to face directly.

It is reported that in June this year, Hozon Auto, the parent company of Nezha Auto, submitted a prospectus to the Hong Kong Stock Exchange for a proposed IPO on the main board. The prospectus revealed the dire situation faced by Nezha Auto. From 2021 to 2023, Hozon Auto incurred losses of 4.84 billion, 6.67 billion, and 6.87 billion yuan, respectively, totaling 18.4 billion yuan in losses over three years, with losses expanding year after year.

Currently, the intensifying competition in the new energy vehicle market has become an "irreversible" trend. The core issue facing Nezha Auto is not just one model but rather a lack of a comprehensive marketing system, product structure, and strategic planning.

Conclusion

Unfortunately, emerging automakers are no strangers to "crisis" stories. From Tesla to NIO, XPeng, and Li Auto, all have faced their darkest moments. Some automakers have managed to turn the tide, while others have collapsed. Looking at the bigger picture, we can see that automakers that have successfully navigated crises have done so by returning to product strength and restoring sales through a solid foundation. I ask you, does Nezha Auto have this capability?