BANGKOK, Thailand – Chinese electric vehicle maker Neta Auto has suspended its Thai operations after receiving substantial government subsidies, triggering action from the Excise Department and formal complaints from local dealerships.
The automaker Neta Auto (Thailand) Co., Ltd. is facing a liquidity crisis and significant debt. Sales in the first five months of this year fell to 1,256 vehicles, a 43 percent decrease compared to the same period last year. This has led to speculation among dealers and customers about the company’s future in Thailand.
General Manager Xun Paolong previously told automotive media that the Thai subsidiary’s survival depends on the survival of its parent company in China.
The parent company, Hozon New Energy Automobile Co., Ltd., has entered a government-led corporate restructuring process. The action is under the supervision of the Jiaxing Intermediate People’s Court in Zhejiang province to resolve debt issues. Initially, Neta Auto Thailand issued a statement affirming the restructuring in China would not impact its business in Thailand.
However, on June 13th, representatives from 18 Neta dealerships gathered at the Excise Department to file a complaint, stating they believed they were misled.
Chatdanai Komruethai, an executive at Neta dealer VBeyond Innovation Co., Ltd., said the assembled dealers face combined losses of over 200 million Thai baht. He claimed Neta repeatedly delayed payments, citing the need for approval from China. The dealers urged the government to halt further subsidy payments, fearing the funds would be sent to China instead of settling debts.
Deputy Director-General Panupong Sriket of the Excise Department confirmed that subsequent subsidy payments have been slow. This decision was made after the department was notified that Neta’s assembly plant, operated by Bangchan General Assembly Co., Ltd., had stopped production. The halt means Neta is failing to meet the production requirements of the EV 3.0 subsidy program.
A source from Neta Auto Thailand confirmed the company received 400 million Thai baht in subsidies in late 2024. The company is still obligated to produce approximately 20,000 more vehicles to fulfill its agreement with the government. (NNT)
