Embattled Chinese EV maker Hozon eyes exports to survive brutal domestic price war

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The Shanghai-based EV maker aims to sell 50 per cent of its cars overseas by 2026 and turn a profit the same year, founder Fang Yunzhou says

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Hozon founder and chairman Fang Yunzhou at the delivery ceremony of Neta X cars in Hong Kong in September. Photo: May Tse

Daniel Renin Shanghai

Published: 6:00am, 10 Dec 2024Updated: 6:15am, 10 Dec 2024

Chinese electric vehicle (EV) start-up Hozon New Energy Automobile, which is reeling from a cutthroat price war on the mainland, plans to sell half of its cars overseas as early as 2026 and attain profitability the same year, according to its founder.

The 10-year-old Shanghai-based carmaker recently downsized its operations following a series of challenges, including a cash crunch, that threatened its survival.

“Through optimisation and reorganisation, the company’s management structure will be simplified, and operations will become more efficient,” Fang Yunzhou, who is also the chairman, said in a statement to the Post. “Administrative costs will be reduced, and a team of young professionals will be built up.”

Fang did not elaborate on the lay-offs, but said they were necessary to “establish a new Hozon”, adding that the company was determined to launch an initial public offering in Hong Kong despite the cash-flow problems. He did not elaborate.

Fang Yunzhou, founder and chairman of Hozon New Energy Automobile, says the carmaker is trimming fat to be come lean and efficient. Photo: May Tse

The maker of Neta-branded EVs will also target middle-income consumers in China and break even in 2026, Fang said.