Thai Government Sues Neta Auto for $56M in Unpaid Subsidies Over Unfulfilled Local Production Pledge

Thailand’s Ministry of Finance plans to file a civil lawsuit on January 14 against Neta Auto’s Thai subsidiary to recover approximately 2 billion Thai baht (about RMB 400 million) in electric vehicle subsidies. The government alleges that the company failed to fulfill its commitment under the subsidy agreement to localize production—specifically, producing 16,000 vehicles in 2024 and 19,000 in 2025—but fell significantly short of these targets. Neta Auto entered the Thai market in 2022 and rapidly expanded by leveraging zero-tariff imports and government subsidies. In 2023, it became Thailand’s second-best-selling Chinese EV brand after BYD, and in 2024, it captured an 11.4% market share, ranking first among China’s new-energy vehicle startups in the country. However, recent financial difficulties at its parent company have led to the suspension of operations by multiple Neta dealerships in Thailand and raised concerns about the stability of its after-sales service network. As Neta has refused to cooperate in repaying the subsidies, Thai authorities intend to seek asset freezes through litigation to recover the funds.