Neta, a Chinese electric vehicle (EV) maker, is encountering difficulties in Thailand, its largest international market.

The company struggles to meet government production requirements and address complaints from dealers regarding unpaid debts.

Thailand’s government incentive program encourages local EV production by exempting automakers from import duties.

However, it requires that domestic production matches import volumes. Neta has not met the 2024 production targets, causing its shortfall to be carried over into this year.

The Thai Excise Department confirmed it is withholding payments to Neta due to these unmet obligations.

Additionally, Neta’s parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China in June.

Neta and its parent company did not respond to requests for comment.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Thailand’s automotive transformation faces growing pains

Thailand’s ambitious EV transition comes after decades as Southeast Asia’s automotive manufacturing hub, having built this position since the 1950s when the country began shifting from an agricultural to industrial economy.

The nation once ranked as the 9th largest global vehicle producer with 2.4 million units in 2012-2013, employing 850,000 people and contributing approximately 10% to Thailand’s GDP 1.

However, this established industry now faces significant disruption as it attempts to pivot toward electric vehicles, with the government targeting 30% of auto production to be EVs by 2030 2.

The transition is complicated by Thailand’s economic realities. Auto sales declined 25% year-over-year in 2024 to 572,675 units, with pure EV sales below 67,000 units, reflecting high household debt levels that limit consumer purchasing power 3.

This context explains why Thailand created incentive programs requiring manufacturers to match imports with local production. They are attempting to maintain their manufacturing base while pivoting to new technologies.

2️⃣ Chinese EV market dynamics create unsustainable competition