Electric vehicle manufacturer Neta Auto Thailand may be required to return over 2 billion baht in government subsidies after failing to meet the conditions set out under Thailand’s EV support programme, according to government officials and industry reports.
Deputy Finance Minister Paopoom Rojanasakul confirmed on 11 June 2025 that companies participating in Thailand’s electric vehicle subsidy programme are obligated to repay funds if they do not adhere to the local production requirements. The initiative, designed to boost domestic EV manufacturing, mandates participating firms to establish production facilities and gradually replace imports with locally produced vehicles.
Neta Auto Thailand, a subsidiary of Chinese automaker Hozon Auto, is currently under scrutiny for potentially falling short of those obligations. The company began assembling battery electric vehicles (BEVs) in March 2024 in cooperation with Bangchan General Assembly, with an annual capacity of 10,000 units. Since entering the Thai market in 2022, Neta has sold approximately 25,000 vehicles.
Under the government’s EV support scheme Phase 2, which runs from 2024 to 2027, passenger vehicles can receive subsidies of up to 100,000 baht per unit, while motorcycles are eligible for up to 10,000 baht. These incentives are channeled through importers to benefit consumers. In return, participating automakers are required to establish local manufacturing and meet a production-to-import ratio of 2:1 by 2026, increasing to 3:1 in 2027.
Failure to meet these targets requires companies to refund the subsidies received. Additional support measures include reductions in import duties—capped at 40% for fully built units in 2024 and 2025—and a lowered excise tax rate from 8% to 2%.
Hozon Auto is currently undergoing corporate restructuring, with efforts focused on resolving financial difficulties through mechanisms such as debt-to-equity conversion and new capital inflows. Neta recently opened a parts distribution center in Nakhon Pathom, aiming to bolster after-sales services in Thailand.
Company executives have expressed optimism about continuing operations and meeting local commitments. Sun Baolong, who oversees Hozon Auto’s Southeast Asia business, has previously stated that the company intends to maintain production and sales in Thailand despite ongoing financial challenges.
