Chinese car companies are facing severe internal turmoil, with the electric car brand Nezha Automotive deep in operational difficulties. Rumors circulating online claim that the company’s former CEO, Zhang Yong, has traveled to the UK, sparking speculation. In response, Zhang Yong stated that he is “traveling for fundraising for the company.”
According to reports from several media outlets including “Daily Economic News,” multiple former employees of Nezha Automotive have stated that the company owes nearly 400 million yuan in compensation, affecting over 3,000 people. Nezha Automotive had only sold 110 vehicles domestically in China in January this year.
In 2024, Nezha Automotive implemented multiple rounds of salary reductions and layoffs. Between November and December of the same year, a large number of employees negotiated resignations with Nezha Automotive, with the company being exposed for its poor management practices.
In December 2024, Nezha Automotive announced that due to company strategic adjustments, Zhang Yong would no longer serve as CEO but as a consultant, with Nezha Automotive’s founder and chairman, Fang Yunzhou, taking over as CEO. Zhang Yong’s Weibo account has not been updated since October 14 last year.
Chinese media outlet “Tech Planet” cited insider sources in reporting that Zhang Yong had obtained a UK visa before leaving his position and has recently traveled to the UK, where he remains currently.
News of Zhang Yong’s resignation and presence in the UK became a hot topic on the morning of the 14th. At 3:25 pm on the 14th, Zhang Yong posted a dynamic response on his WeChat moments: “Thank you for your concern. I am still serving as a consultant for Nezha Automotive and am traveling around to fundraise for the company.”
A report from “Cover News” stated that when questioned about the company’s operational situation, a certain management personnel indicated that the company is running normally but is facing operational challenges.
Multiple former employees of Nezha Automotive revealed to media outlets such as “36Kr” that they have yet to receive compensation for subscribed shares or other outstanding payments, with the company owing nearly 400 million yuan in compensation and payables.
On April 14, a video circulated online showing Nezha Automotive’s dealers gathering at the Tongxiang factory in Zhejiang, demanding payment from the company. In the video, a dealer stated: “From September last year till now, the manufacturer has never responded to any of our messages positively.”
Established in 2014, Nezha Automotive reached the top of the “new forces” car brand list in 2022 with a sales volume of 152,000 vehicles and a valuation of up to 25 billion yuan. However, from 2023 onwards, the brand’s delivery situation plummeted.
Since 2025, Nezha Automotive has been hit with issues such as factory shutdowns, collective rights protection actions by suppliers and dealers.