According to Nikkei, Thailand’s Ministry of Finance plans to sue the local subsidiary of Chinese electric vehicle brand Neta to recover a subsidy exceeding 2 billion baht (approximately $63.5 million) paid out since 2022.
The Thai government alleges the company failed to meet domestic production requirements and is pursuing recovery through civil litigation and asset seizure.
The Ministry of Finance intends to file the lawsuit against Neta Auto Thailand. As Neta’s parent company, Hozon New Energy Automobile, undergoes legal restructuring in China, the local subsidiary will be the target of legal action.
The Ministry has not disclosed a specific timeline for filing the lawsuit.
Under Thailand’s electric vehicle subsidy program, buyers can receive up to 150,000 baht (approximately $4,200) per vehicle, provided participating brands initiate local production. Officials previously demanded subsidy repayment, which the company failed to comply with, leading to the lawsuit.
If the court approves the Ministry’s request, authorities could freeze Neta Auto Thailand’s assets and bank accounts to recover the funds. Neta entered the Thai market in 2022 and is among China’s leading EV brands alongside BYD, Great Wall Motor, and SAIC Motor’s MG.
In 2023, Neta held the second-largest market share in Thailand’s EV sector, trailing only BYD. Following its parent company’s court-led restructuring, delays in supplying replacement parts became frequent, resulting in a class-action lawsuit.
Other Chinese manufacturers have also fallen short of production targets, and the Ministry of Finance may pursue similar remedies in those cases.
Source: Nikkei
