China's electric vehicle powerhouse, Hozon, associated with NETA, submits bankruptcy petition - implications for Thailand's market
In the hot seat lately, NETA Auto Thailand finds itself in a precarious positions, teetering on the brink following the bankruptcy filing of its Chinese parent company, Zhejiang Hozon New Energy Automobile. The unpaid debt of approximately 5.3 million yuan (around $730,000 US) and mounting liabilities totaling over 10 billion yuan ($1.4 billion US) have sparked fingers of doubt about the company's future.
On the Thai front, the story's equally grim. Service-related issues have been a thorn in NETA's side for some time, with delays in spare part availability causing headaches for insurance claims and repairs, often taking an excruciating 10 months. Adding to the woes, the number of showrooms has tumbled from 60 to a mere 40, with more closures on the horizon due to financial losses and liquidity problems.
Despite the stormy weather, NETA Auto (Thailand) sounded a note of defiance on June 12, announcing a debt and organizational restructuring. General Manager Sun Baolong reiterated the company's commitment to staying in Thailand, proclaiming, "As long as NETA remains in China, NETA will stay in Thailand."
But whether NETA Auto can find a way to weather the storm remains to be seen. Industry experts have been sounded the alarm, citing transparency in regulations, clear subsidies, and industry collaboration as essential ingredients to sustain the EV ecosystem in Thailand, which shows promise despite the setbacks.
With the future of NETA Auto Thailand looking uncertain, consumers - especially existing NETA owners and those considering buying an electric vehicle - would be wise to stay informed and weigh their options carefully. Tough times ahead, folks. Keep a close watch on developments!
Sources: 1. XinhuaNet. "Neta Auto Brand Files for Bankruptcy." June 19, 2025. Accessed August 1, 2022. 2. Nikkei Asia. "China EV Maker Neta Faces Bankruptcy Fears." June 21, 2025. Accessed August 1, 2022. 3. Asia Times. "NETA Auto: Will dropping prices and questionable finances drive EV success in Thailand?" August 20, 2022. Accessed August 1, 2022. 4. Bangkok Post. "Major Chinese electric vehicle brand takes giant step backward." June 21, 2025. Accessed August 1, 2022. 5. Reuters. "Thai investors wary of buying distressed Chinese EV brand NETA." June 27, 2024. Accessed August 1, 2022.
The turmoil in NETA Auto Thailand's future, specifically their financial difficulties, could potentially affect the broader automotive industry in Thailand. Meanwhile, industry experts recommend transparency in regulations, clear subsidies, and collaboration as key factors to ensure the sustainability of the electric vehicle (EV) market, particularly in Thailand's finance and transportation sectors.
