Thailand’s EV automotive production facing challengers
BANGKOK, July 24 – Thailand’s ambition to become a regional electric vehicle (EV) production hub is facing a serious challenge as rising competition from Chinese automakers tests the viability of its local incentive scheme, industry participants and government officials said.
China’s Neta, an early entrant into Thailand’s EV market in 2022, has seen its market share plunge from around 12% in 2023 to just 4% in early 2025. The brand failed to meet Thai government requirements that EV imports be matched by local production in 2024, triggering withheld incentives and legal disputes with dealerships over unpaid debts worth over 200 million baht ($6 million).
Neta’s parent company, Zhejiang Hozon New Energy Automobile, has entered bankruptcy proceedings in China, further tightening its grip on Thai operations. Dealers in Thailand are suing the company for missing support payments related to promised showrooms and maintenance networks, reflecting broader concerns about the sustainability of government-backed EV policies.
The Neta case underscores structural weaknesses in Thailand’s EV strategy. The government-led incentive programme exempted taxes for carmakers that met local production thresholds, but most Chinese firms—including Neta—fell short amid slowing sales and tightening credit markets. Smaller players continue to lose ground to dominant brands such as BYD, which maintains nearly 50% of Thailand’s EV market.
In separate economic news, Thailand’s leading business group lowered its GDP growth forecast for 2025 to just 2.0–2.2%, down from earlier projections of 2.4–2.9%, citing the impact of threatened U.S. tariffs and structural headwinds such as high household debt and a volatile baht. Export growth is now expected at a mere 0.3–0.9% versus the previous 1.5–2.5% outlook. The finance ministry has similarly forecast growth at 2.1%, reflecting a constrained economic environment.
Policy makers are responding: Thailand’s deputy finance minister announced a 40 billion baht ($1.2 billion) support package to help offset escalating U.S. trade tensions. Meanwhile, the central bank has paused interest rate cuts and is considering further monetary easing to cushion the slowdown.
Sources
- China’s intense EV rivalry tests Thailand’s local production goals – Reuters, July 4, 2025
- Thai business group cuts 2025 GDP growth forecast over U.S. tariffs impact – Reuters, July 5, 2025
- Thailand preparing $1.2 billion in measures to address US tariff impact – Reuters, July 9, 2025