Toyota acquires Nezha Auto

Recently, it has been widely circulated online that Toyota has acquired Nezha Auto, which is in financial crisis. Nezha Auto has suffered a broken capital chain since 2024, with cumulative losses exceeding 18 billion yuan, three major factories shut down, and domestic sales of only 110 vehicles in January 2025. Although Nezha Auto has tried to resolve its debts through "debt-to-equity swaps" and seek financing in the Thai market, it will be difficult to reverse the decline in the short term. If Toyota chooses to acquire Nezha Auto, it may be to quickly obtain Chinese market channels and technical reinforcements. However, Nezha's huge debts and declining brand value may become obstacles to the acquisition.