More than 400,000 Neta owners in China have received notice that connected services for their vehicles will be discontinued after the automaker entered bankruptcy proceedings, according to a report cited by AutoPro. The cars can still be driven, but features relying on Neta’s servers—including location services, Bluetooth phone keys and remote-control functions through the app—may stop working. Owners in several parts of China had already reported repeated outages during 2025 before the termination notice was issued.
The report describes the issue as part of a wider after-sales problem for failed Chinese electric-vehicle makers. By May 2026, 23 new-energy vehicle companies in China had gone bankrupt, entered liquidation or ceased operations, with about 850,000 passenger cars sold among them. The list includes Neta, WM Motor, HiPhi, Aiways and Byton. Neta delivered 152,000 vehicles in 2022, its strongest year as a startup brand.
A restructuring case involving WM Motor provides one example of how ongoing support can be handled. The company had sold about 120,000 vehicles before stopping production at the end of 2022. During restructuring, a court required it to retain 65 staff for after-sales, connected services and basic financial operations, and to keep paying server and digital-service costs. Since January 2025, an investor has advanced 2.58 million yuan per month; cumulative spending on connected services reached 34.24 million yuan, recognized as a common-benefit debt in the restructuring plan. The report also says around 50 Chinese EV manufacturers remain loss-making, amid overcapacity and the return of a 5% purchase tax from January 2026.