Neta Auto's Thai Subsidiary Faces Bankruptcy as 2 Billion Baht in Subsidies Sought

Thailand’s Ministry of Finance recently announced it will file a lawsuit against NETA Auto Thailand, the Thai subsidiary of Chinese electric vehicle maker NIO (Hozon New Energy), to recover 2 billion Thai baht (approximately RMB 400 million) in EV subsidies granted since 2022. NETA lost its eligibility for Thailand’s EV 3.0 subsidy program after failing to fulfill its commitment to local production, as its parent company, Hozon New Energy, plunged into financial distress. The Thai government has revised its regulations, now requiring automakers to submit production plans every two months; otherwise, subsidies will be suspended. Currently, NETA’s dealer network in Thailand has shrunk from over 60 outlets to around 20, significantly weakening its after-sales service capabilities. Thai authorities plan to initiate legal proceedings in January 2026 and freeze NETA’s assets in Thailand to enforce repayment. Hozon New Energy has already entered bankruptcy restructuring proceedings, and if successful, this could potentially provide a lifeline for its Thai operations.