Kristina Roberts
Thailand has big dreams of becoming a major hub for electric vehicle (EV) production, but the fierce competition among Chinese EV makers is making things difficult. Chinese car companies have been expanding quickly into Thailand, which is their largest market in Asia. However, not all of them are succeeding, and this is putting pressure on Thailand’s plans to boost local manufacturing.
One of the Chinese brands that entered Thailand early is Neta, which started selling EVs there in 2022. At first, things looked promising, but now Neta is struggling. Sales have dropped, and the company is finding it hard to keep up with Thailand’s government rules for EV production. The Thai government offers incentives to carmakers, like cutting import taxes, but in return, companies must produce a certain number of cars locally. Neta has not been able to meet these requirements, and because of this, the government has held back some payments to the company.
The problem is not just about Neta—it shows how tough the competition has become. China’s EV market is extremely competitive, with many brands fighting for customers by lowering prices and offering big discounts. This intense rivalry is now affecting Thailand, where Chinese brands like BYD are doing well, but smaller companies like Neta are falling behind. Some Neta dealers in Thailand have even complained that the company owes them money, showing how difficult the situation has become.
Thailand’s government wants more EVs to be made locally, but carmakers are facing challenges. Sales have slowed down, and getting loans has become harder. Because of this, some companies asked the government to relax the rules, and the production targets that were supposed to be met in 2024 have now been pushed to this year. However, even with this extension, some brands are still struggling.
The situation with Neta is a clear example of how China’s crowded EV market is impacting other countries. When Chinese brands compete too aggressively at home, some of them face financial troubles, and this spills over into markets like Thailand. For Thailand, this means that its goal of becoming an EV production hub may take longer to achieve. The government is trying to support the industry, but with so much competition and changing market conditions, the road ahead is uncertain.
Electric vehicles are the future, and Thailand wants to be a key player in making them. But with Chinese companies battling for dominance, smaller brands are getting squeezed out. This could mean fewer choices for customers and delays in Thailand’s plans to build a strong local EV industry. The government will need to find a balance—encouraging growth while making sure that companies can actually meet their promises. For now, the competition is fierce, and only the strongest players will survive.
