China’s overcapacity and BYD dominance put smaller rivals at risk
Thailand’s electric vehicle (EV) market is witnessing the fallout of China’s hyper-competitive EV sector as smaller players like Neta struggle to survive. Once a promising entrant, Neta is now facing dealer lawsuits, unpaid government incentives, and plummeting market share, threatening its local production ambitions.
Introduced to Thailand in 2022, Neta benefited from a government incentive program that waived import duties in exchange for a commitment to match imports with domestic production by 2024. However, citing slowing demand and tight credit conditions, Neta has failed to meet production targets. Thai authorities have since withheld incentive payments and dealers claim more than 200 million baht in unpaid debt.
Neta’s Chinese parent, Zhejiang Hozon, has entered bankruptcy proceedings, and its operations in Thailand have been further undermined by unfulfilled showroom support and after-sales promises. Dealers like Saravut Khunpitiluck and Chatdanai Komrutai have halted orders and are now seeking legal remedies, while customer complaints over maintenance issues have prompted investigations by consumer watchdogs.
At its peak in 2023, Neta held a 12% share of Thailand’s EV market. By mid-2025, that figure dropped to 4% as new vehicle registrations plummeted by 48.5%. In contrast, BYD commands a dominant 49% market share, leveraging scale, competitive pricing, and strong after-sales support.
Thailand’s EV ambitions collide with reality
Thailand, Southeast Asia’s second-largest economy and a major auto export hub, set a goal to make EVs account for 30% of its auto production by 2030. The country has attracted over $3 billion in Chinese EV investments, including Neta, with aggressive subsidy schemes. But the government has now extended the production timeline amid concerns about oversupply and price wars.
Under the revised rules, carmakers must produce 1.5 vehicles locally for every imported EV from 2022 to 2023. While the extension helped firms avoid fines, smaller brands like Neta have found it impossible to comply. A failure to meet production quotas jeopardizes financial support and damages consumer trust.
Analysts say the Neta debacle reflects the broader fragility of second-tier Chinese EV brands trying to expand abroad without sufficient scale or service networks. With 18 Chinese brands now competing in Thailand and some slashing prices by over 20%, the market is becoming as fiercely contested as China’s domestic scene.
Although Thai officials have not blamed policy design, experts like Ben Kiatkwankul warn that Neta’s failure should be a wake-up call. “It exposes structural risks in how incentive schemes are linked to production timelines,” he noted.