Neutrals are Transformers who renounced the ideas of factions or refused to be involved in the Great War. While some resisted joining any faction by choice, others defining themselves not by faction but by world. As the war dragged on, the majority weren't suited for combat or maybe combat-suited but only for self-defense.
While they're called "Neutrals" by the Autobots, the Decepticons refer to them as "target practice".
History[]
Transformers: Exodus[]
The Seekers (except Starscream's troops) and the Praxians were neutral during the war until they were attacked by the Decepticons, being forced to fight back.
Transformers: War for Cybertron[]
On the space station controlled by Starscream, most of the workers and guards on board were neutral. However, Megatron, Brawl and Barricade have fun shooting them all into bits and imprisoning them while on their way to the Dark Energon storage area, mentioning that they're target practice to them. Most of the Neutrals were seen sporting Autobot-like colors, mostly blue with some brown and blacks, along with yellow glowy parts.
It is currently unknown if they left Cybertron just as the Autobots and Decepticons did during the Great Exodus.