Nezha Motors Accepts Payment Without Delivering Cars, Dealers Fight for Rights Goes Viral

On April 15th, Nezha Motors’ failure to deliver cars after receiving payment has led to more than 300 dealers rallying to protect their rights, making headlines and trending on social media in China.

Multiple Chinese media outlets reported on April 14th about some Nezha Motors dealers standing up for their rights. According to the reports, many dealers revealed that they had paid hundreds of millions in full as per the manufacturer’s requirements, but had not received a single car. Some dealers had to take out loans for car purchases and are now facing lawsuits from banks for repayment.

Authorized dealers told Hongxing News, “From September last year until now, the manufacturer has not responded positively to our inquiries.”

On the morning of April 14th, a dealer named Zhou from Guizhou province shared with Hongxing News that she has been a long-time dealer for Nezha Motors, representing the brand for four years. In September 2024, she was instructed by the regional manager to immediately make a down payment to order cars from the factory. “I paid over 1.2 million for the cars,” Zhou said. She never anticipated that she would face a situation where no cars were delivered. “But up until now, the cars have not arrived. Since selling cars last year, the dealers have collectively paid around 2 million yuan in total,” she added. Zhou mentioned that this money has been continuously withheld by Nezha Motors without explanation, despite her repeated inquiries.

Currently, the dealers have put forth three demands: compensation for operational losses from September 2024 until now, advance payment for operational costs from May to July 2025, and immediate reimbursement of all unpaid rebates and subsidies pending before May 11th. They also seek the prompt restoration of after-sales service.

An unidentified Nezha Motors executive told Hongxing News on April 14th that from the dealers’ perspective, the reported issues align with the actual situation. He disclosed that since the financial strain on Nezha Motors emerged last year, the company has been seeking financing and striving for self-rescue, but the outlook is not optimistic.

According to Dahe News on April 14th, in January this year, a netizen visited a Nezha Motors 4S store and found it deserted. On the same day, a Nezha Motors user from Xi’an told Kanjian reporter that all local 4S stores had closed, raising concerns about future after-sales services and maintenance.

Numerous netizens commented on Nezha Motors’ official Douyin account, reporting issues with their Nezha cars and difficulty obtaining spare parts after contacting 4S stores. Some expressed uncertainty about where to get maintenance services.

Fenghuang Weekly Autos reported on April 14th that based on information from Nezha Motors’ official website and customer service recommendations, they visited a Nezha Motors Beijing Borui Xiangzhi Experience Center located in Beijing Chaoyang District. However, the former Nezha Motors experience center had transitioned into a center for another car brand.

The former manager of the store informed Fenghuang Weekly Autos that they had closed shop: “Currently in Beijing, there are hardly any operational Nezha sales centers left. Information about certain stores still being found on some platforms is just pending updates.”

In July last year, Nezha Motors faced rumors of factory shutdowns, layoffs, and pay cuts. However, Nezha Motors’ legal department quickly issued a statement to dispel the false rumors of factory shutdowns.

According to Tencent Autos’ Far Beam on April 12th, Nezha Motors went through a significant downsizing around October last year, involving various departments. While mass layoffs have not recurred since, the company reduced all employees’ salaries by half, only providing full salaries in December. The company had over 8,600 employees on October 16th, but by March 24th, only a little over 1,600 employees remained.

On December 6th last year, Nezha Motors changed its CEO, appointing Zhang Yong as a consultant due to strategic adjustments. Nezha Motors’ founder and chairman, Fang Yunzhou, took on the additional role of CEO.

Far Beam raised questions about whether Nezha Motors will completely abandon its car manufacturing operations.

A netizen under the alias “Good Luck” remarked, “It is indeed a precarious situation. Dealers are clearing out stocks, and customer service inquiries often go unanswered. Most of the 4S stores under its umbrella are on the verge of closure, owing money to suppliers, unable to produce cars, lacking after-sales support, and now even struggling to pay their employees’ salaries. A friend tried to schedule a test drive a few days ago, but the first store had no test drives available, and the second store didn’t even answer their phone. Located in Hefei.”

Nezha Motors is an intelligent electric vehicle brand under Hezhong New Energy Automobile Co., Ltd., established in 2018, with its headquarters in Putuo District, Shanghai.