Electric vehicle (EV) importers participating in the Thai government's subsidy program will have to return received funds if they don't comply with the conditions, according to Deputy Finance Minister Paopoom Rojanasakul. This situation may affect Neta Auto Thailand, which manufactures EVs under the Neta brand, with subsidies exceeding 61 million USD.
"This issue needs review by a new leadership team due to the substantial amount," a company representative told the Bangkok Post.
Hozon Auto, Neta Thailand's parent company, is restructuring its management teams to address financial challenges, including the possibility of debt-to-equity swaps and fundraising.
Government subsidies come with the condition of building EV manufacturing plants in Thailand to gradually replace imports. If companies fail to meet this requirement, they must return the funds, Mr. Paopoom explained.
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The Neta V-II at the 2025 Bangkok International Motor Show. Photo: Neta |
The Neta V-II at the 2025 Bangkok International Motor Show. Photo: Neta
In the second phase of the government's EV incentive program (2024-2027), subsidies are distributed through importers to buyers.
Cars and pickup trucks receive up to 3,050 USD per vehicle, while motorcycles receive up to 305 USD.
The government also reduced import taxes on EVs to a 40% ceiling for 2024-2025 and lowered the excise tax to 2% from 8%.
Under Thailand's EV 3.0 policy, manufacturers are required to produce EVs domestically this year at a ratio of 1.5 vehicles for every imported one. Based on this, Neta must produce 19,000 EVs locally this year, but so far, the company has only manufactured 4,000.
Mr. Paopoom said the government has paid Neta over 61 million USD in subsidies. After Neta experienced liquidity problems and failed to meet its production target, the Revenue Department suspended an additional 12.2 million USD in subsidies.
The Ministry of Finance also proposed a regulation change requiring EV manufacturers to submit offsetting production plans every two months. Mr. Paopoom added that if they don't adhere to the plan, the government has the right to suspend subsidy payments.
Neta has been selling vehicles in Thailand since 2022 and partnered with Bangchan General Assembly to begin assembling EVs there in 3/2024, making it the company's first EV plant outside China. The plant's annual output is 10,000 vehicles. As of May, the company had sold vehicles to approximately 25,000 Thai customers. Also in May, Neta opened a new parts distribution center in Nakhon Pathom to improve after-sales service.
My Anh
