Chinese EV maker Hozon launches latest model to boost sales ahead of Hong Kong IPO

“We feel it safe to say that the new model is worth owning because it will offer customers the best performance and experience,” Hozon CEO Zhang Yong said during a briefing on Sunday. “We are using our latest materials and technologies to reward our clients.”

A wagon, also known as a station wagon, an estate car or a shooting brake, is a sedan-height car with an elongated boot and rear seats.

The Neta S extended-range variant sports a price tag of 169,900 yuan to 179,900 yuan. Like other extended-range EVs on the market, it has a small internal-combustion engine that generates additional power to charge the battery when needed.

Neta is a variation of the name Nezha, a protection deity in Chinese mythology. The brand falls in the budget category in China and is aimed at middle and low-income drivers who prefer battery-powered vehicles to petrol-based cars.

Hozon, founded in 2014, has raised 26.4 billion yuan in venture capital funding over 11 rounds from 19 investors, according to data compiled by Crunchbase. Its backers include the Chinese cybersecurity firm Qihoo 360 Technology and Citic Securities, mainland China’s largest brokerage.

02:21

China’s EV drive in Cuba reshapes Havana’s roads

China’s EV drive in Cuba reshapes Havana’s roads

The company handed 11,015 vehicles to customers in July, up 9.7 per cent year on year. During the first seven months of 2024, it delivered 64,785 units, down 10.6 per cent year on year.

In June, Hozon filed a listing application with the Hong Kong stock exchange and said it would use the proceeds from its IPO to quicken the pace of its overseas expansion amid cutthroat domestic competition.

He did not disclose the targeted IPO size, but Bloomberg reported it could be around US$1 billion, which would make it one of Hong Kong’s top five listings this year.

“Hozon is chasing growth both at home and abroad,” said Phate Zhang, founder of Shanghai-based electric-car data provider CnEVPost. “Price competition in China has already largely squeezed EV makers’ profit margins.”

01:38

Chinese EV maker BYD launches its first Southeast Asia factory in Thailand

Chinese EV maker BYD launches its first Southeast Asia factory in Thailand

On the mainland, the company is competing against a clutch of domestic rivals including BYD, the world’s largest electric-car maker, and Stellantis-backed start-up Leapmotor.