Chinese EV Makers Struggle in Thailand Amid Tough Incentives and Domestic Policy

The fierce rivalry in China's electric car market is affecting Thailand, the country's largest market in Asia, as smaller firms find it difficult to compete with BYD, the industry leader, endangering the ambitions of local manufacturers, Economic Times has reported. 

According to the report, Neta, a Chinese EV brand operating in Thailand since 2022, is one such company which is finding it challenging to fulfil the demands of a rigorous government incentive program designed to increase Thai EV production.

Car manufacturers are not subject to import taxes under the program, but they must equal import quantities with domestic output by 2024.

Due to decreased sales and contracted credit availability, auto manufacturers have requested the government to modify the program so that the 2024 production shortfall would be carried over into this year.

After receiving a complaint from 18 Neta dealers in Thailand last month seeking to recoup more than 200 million baht ($6.17 million) of a contract, Excise Department official Panupong Sriket stated that Neta has said that it is unable to produce the necessary number of cars locally and that the government has withheld some payments to the EV maker.

According to Reuters, Neta also failed to pay for promised assistance in constructing showrooms and post-purchase support.

Moreover, according to official media, Zhejiang Hozon New Energy Automobile, the parent business of Neta, filed for bankruptcy in China last month.