Thailand’s Finance Ministry will sue Neta Auto Thailand to recover over 2 billion baht in electric‑vehicle subsidies. Discover the case details and what it means for the market – read now.
The Thai Ministry of Finance is preparing to file a civil lawsuit against Neta Auto Thailand, the local subsidiary of Chinese electric‑vehicle (EV) maker Neta, to recover more than 2 billion baht (about US$63.7 million) in government subsidies.
Why the lawsuit matters
Under Thailand’s EV incentive programme, manufacturers that receive subsidies must meet a domestic production quota within a set timeframe. The Ministry says Neta failed to reach the agreed‑upon production levels, breaching the conditions tied to the subsidies paid since 2022.
Legal route and possible remedies
The finance ministry plans to pursue the case through a civil court filing. It has not ruled out requesting a court‑ordered freeze on Neta Auto Thailand’s assets and bank accounts to secure the repayment.
The lawsuit targets the Thai subsidiary only. Neta’s parent company, Hozon New Energy Automobile, is currently undergoing a court‑supervised restructuring in mainland China, so it is not a direct party to the Thai case.
Thailand’s EV incentive scheme
Thai buyers can receive up to 150,000 baht (≈ US$4,800) per electric car, provided the manufacturer sets up local production within the program’s deadline. The scheme is designed to boost domestic manufacturing and accelerate EV adoption.
Neta’s rapid rise and recent setbacks
Neta entered the Thai market in 2022 and quickly became one of the leading Chinese EV brands alongside BYD, Great Wall Motor and MG (SAIC). In 2023, it ranked second in market share, trailing only BYD.
However, the parent company’s restructuring led to frequent delays in supplying replacement parts, sparking a class‑action lawsuit from customers. The friction over unmet production commitments added pressure on the government to act.
Broader implications for Chinese EV makers
Neta is not alone. Other Chinese EV manufacturers operating in Thailand are also suspected of falling short of their production quotas. The finance ministry warned that further corrective measures and enforcement actions could follow.
Key points
- Amount sought: >2 billion baht (≈ US$63.7 million)
- Legal basis: breach of domestic‑production requirement under the EV subsidy programme
- Potential outcome: court‑ordered asset and account freeze for Neta Auto Thailand
- Parent company Hozon is in restructuring, not directly sued in Thailand
- Thai EV incentive: up to 150,000 baht per vehicle for qualifying purchases
The case highlights the growing scrutiny of subsidy programmes as Thailand pushes for a home‑grown EV industry. Stakeholders are watching closely to see how the government balances support with strict compliance.