Finance Ministry discusses extending Neta's EV production deadline

The Finance Ministry is planning discussions with automaker Neta regarding the extension of the deadline under the EV 3.5 scheme, which would allow the company to continue operations and meet its obligations to produce electric vehicles (EVs) in Thailand, despite financial challenges.

Neta Auto (Thailand) Ltd., a Chinese electric vehicle manufacturer, has been facing financial difficulties and pressure to comply with the Thai government’s EV support scheme. However, the government is exploring flexible solutions to help Neta continue operations, signaling its commitment to supporting the country's EV industry.

In recent reports, Neta denied rumors of financial insolvency after news emerged about liquidity issues with its parent company, Hozon Auto, in China. The company clarified that its ongoing debt dispute with Yuxing Advertising was simply a standard legal process and not an insolvency filing.



Paopoom Rojanasakul, Deputy Finance Minister, revealed that the Ministry and the Excise Department are closely monitoring Neta’s financial issues. The company faces the possibility of losing its EV 3.0 subsidy if it fails to meet the condition of producing 1.5 times the number of vehicles it imported into Thailand, a target of about 19,000 cars by the end of 2025.The Excise Department is working on a proposal to present to the National Electric Vehicle Policy Committee (EV Board), with the possibility of granting Neta an extension under the EV 3.5 scheme, which would push the deadline for production to the end of 2027.

However, the EV 3.5 scheme comes with stricter conditions, including an increase in the production quota to 2-3 times the original amount, and no subsidies will be granted until Neta meets these targets. Despite this, Neta would still benefit from a reduction in excise tax, from 8% to 2%.

“This option would help stabilize the EV industry, as the closure of any company right now would damage the entire industry, erode consumer confidence, and harm the government's EV policies,” said a Finance Ministry source.

The goal of the EV subsidies and tax reductions is to promote the growth of the electric vehicle industry in Thailand by encouraging investment in battery factories, EV manufacturing plants, and job creation within the country.

Sources indicate that today (June 13), Neta’s dealer group will meet with the Excise Department to discuss the situation and seek guidance on how to manage the challenges they are facing.

(2025/06/13-00:00)