TLDRs;
- Neta failed to meet Thailand’s EV production targets, prompting the government to withhold incentive payments.
- The automaker faces growing pressure as its parent company undergoes bankruptcy in China.
- Intense competition from Chinese EV rivals and a price war have eroded Neta’s market share.
- Complaints over unpaid dealer debts and poor after-sales support are damaging Neta’s brand in Thailand.
Neta, the electric vehicle brand under China’s Hozon Auto, is facing mounting challenges in Thailand as it fails to meet key local production targets tied to the country’s EV incentive program.
Once seen as a promising player in Southeast Asia’s most ambitious electric vehicle push, Neta’s fortunes are now under strain as market dynamics, financial troubles, and operational setbacks collide in its largest overseas market.
Production shortfalls spark government response
Thailand’s government has been actively encouraging automakers to produce EVs locally by offering duty exemptions on imported vehicles. But that incentive comes with a catch, the volume of EVs imported must eventually be matched by equivalent local production.
Neta fell short of its 2024 domestic production quota, and that shortfall is now rolling over into the current year. The Thai Excise Department confirmed that it is withholding financial incentives from Neta as a result. These delayed payments are adding further pressure to the automaker, already grappling with other operational issues.
Mounting pressure from within and abroad
Beyond production struggles, Neta is also facing the fallout from its parent company, Zhejiang Hozon New Energy Automobile, which entered bankruptcy proceedings in China this past June. The financial instability at the parent level casts a long shadow over Neta’s operations in Thailand.
Dealers in the country have also raised concerns over unpaid debts, particularly relating to showroom development and service support. Some claim they are owed over 200 million baht, further shaking confidence in the brand.
These complications are unfolding in a market that has become increasingly competitive, particularly as Chinese EV brands flood Thailand with aggressively priced models. While the influx of Chinese EVs has helped Thailand move toward its ambitious EV adoption goals, it has also created a cutthroat environment. Brands like BYD have triggered price wars by slashing prices across dozens of models, a strategy that smaller players like Neta have struggled to match. Neta’s new car registrations in Thailand reportedly plunged by nearly 50 percent year-on-year, while its market share dropped from 12 percent to just 4 percent.
Thailand’s EV dream hits reality check
Thailand is not just any market for Neta. It is the company’s largest international footprint, and its performance there serves as a bellwether for its broader global aspirations.
The Thai government’s goal to have 30 percent of all locally produced vehicles be electric by 2030 depends heavily on cooperation from foreign EV makers. However, the sharp decline in auto sales, down 25 percent this year, and the slow pace of EV adoption suggest deeper issues.
While consumer interest in EVs remains strong, high household debt and economic pressures have limited purchasing power.
After-sales service becomes a dealbreaker
In this increasingly crowded market, after-sales service has emerged as a key battleground. Neta’s struggles here have not gone unnoticed. Complaints about delayed repairs, parts shortages, and poor maintenance support have surfaced online and among dealer networks.
Without a robust service network, even competitive pricing and sleek designs fall flat. For newer players without the capital or logistics capacity to scale service operations, this creates a steep disadvantage against more established automakers.
