China's EV competition challenges Thailand's local production targets
Neta, among the earliest Chinese EV brands to enter Thailand in 2022, is an example of a struggling carmaker finding it difficult to meet the requirements of a demanding government incentive programme meant to boost Thai EV production.
Under the scheme, carmakers are exempt from import duties, but were obligated to match import volumes with domestic production in 2024.
Citing slowing sales and tightening credit conditions, carmakers asked the government to adjust the scheme and the 2024 production shortfall was rolled over into this year.
Neta said it cannot produce the required number of cars locally and the government has withheld some payments to the EV maker, said excise department official Panupong Sriket, who received a complaint filed last month by 18 Neta dealers in Thailand seeking to recover more than 200 million baht (R109,637,815) of allegedly unpaid debt.
The complaint, a copy of which was reviewed by Reuters, also detailed missed payments by Neta related to promised support for building showrooms and after-sales service.
'I stopped ordering more cars in September because I sensed something was wrong,' said Neta dealership owner Saravut Khunpitiluck.
'I'm suing them.'
Neta's parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media.
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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Under the theme 'Security through Stability,' the bilateral discussions covered areas such as maritime security, cyber security, and defence supplies. 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