Thai Authorities Keep Close Watch on NETA Amid Parent Company's Bankruptcy

Thailand's Excise Department is closely monitoring NETA, the electric vehicle (EV) brand, to ensure it meets its commitments under the country's EV promotion scheme. 

This comes after NETA's Chinese parent company, Zhejiang Hozon New Energy Automobile Co., Ltd., officially entered bankruptcy proceedings, sparking concerns about potential fallout for the Thai operation.

Kulaya Tantitemit, Director-General of the Excise Department, confirmed the department is "closely monitoring the situation" and engaging in "continuous discussions with relevant parties." 

She stressed that all tax measures are being implemented "strictly according to legal procedures" to ensure the "most cost-effective use of tax revenue."

A source from the Ministry of Finance clarified the situation, stating that NETA Thailand is not registered as a branch of NETA China. 

This crucial distinction means NETA Thailand is not subject to the parent company's bankruptcy status. 

Consequently, under existing legal frameworks, NETA Thailand remains obligated to produce 19,000 compensatory vehicles by the end of 2025 as part of the EV 3.0 support programme. The company has already produced over 4,000 units.

Furthermore, an additional 50 million baht in bank guarantees has been requested from NETA Thailand to provide assurance of its compliance with the legal requirements.
 

To ensure proper and appropriate subsidy disbursements, the Excise Department is currently revising the criteria for payments under the EV incentive scheme. 

They plan to propose to the National Electric Vehicle Policy Committee (EV Board) the power to defer compensatory payments to any manufacturers deemed at risk of failing to meet their production obligations.

This move aims to enhance the efficiency and oversight of both the EV 3.0 and upcoming EV 3.5 programmes.