Thailand’s ambitious plan to become a regional hub for electric vehicle (EV) production is under strain as China’s hyper-competitive EV market spills over, threatening smaller brands and local goals, reports Reuters. With Chinese EV makers dominating over 70% of Thailand’s EV market, the intense rivalry and price wars are testing the country’s strategy to have EVs comprise 30% of its auto production by 2030.
Thailand’s EV Ambitions Face Headwinds
Thailand, often called the “Detroit of Southeast Asia,” has attracted over $3 billion in investments from Chinese EV manufacturers, lured by tax breaks and subsidies aimed at boosting local production. The government’s incentive program initially required automakers to match imported EVs with locally produced ones in 2024 to avoid fines.
However, slowing sales and tight credit conditions led to a shortfall, prompting an extension into 2025 with a steeper 1.5-to-1 production ratio. “Neta’s case should give Thai policymakers pause,” said Ben Kiatkwankul, partner at Maverick Consulting Group, highlighting the risks of overreliance on foreign brands.

Neta’s Struggles Reflect Broader Challenges
Smaller Chinese EV brands like Neta are buckling under the pressure. Neta’s market share in Thailand plummeted from 12% in 2023 to 4% in the first five months of 2025, with new registrations dropping 48.5% year-over-year. The company, which sells models like the Neta V-II Lite for $16,924 (549,000 baht), struggles to compete with market leader BYD, whose Dolphin model is priced at $17,572 (569,900 baht).
Neta’s parent company, Zhejiang Hozon, entered bankruptcy in China, exacerbating issues. “I stopped ordering more cars in September because I sensed something was wrong,” said Neta dealership owner Saravut Khunpitiluck, who is now suing the company.
Price Wars and Consumer Confidence
China’s EV overcapacity has fueled aggressive price cuts, with some brands slashing prices by over 20%, according to Rujipun Assarut of KResearch. This strategy aims to stimulate demand in Thailand’s sluggish economy but has eroded margins for smaller players. Neta faces additional hurdles with customer complaints about maintenance and after-sales support, further denting confidence. “Selling cars is difficult right now,” said dealer Chatdanai Komrutai. “There’s no confidence.” These issues highlight the need for robust service networks to sustain EV adoption.

Implications for Thailand’s EV Ecosystem
Thailand’s EV push aims to transition its $53 billion internal combustion engine vehicle industry, long dominated by Japanese brands like Toyota and Honda, toward sustainable mobility. However, the influx of 18 Chinese EV brands—double last year’s count—intensifies competition and risks oversupply. “Neta’s downturn in Thailand reflects the fragility of second-tier Chinese EV brands,” said Counterpoint Research analyst Abhik Mukherjee reportedly. The dominance of BYD, now the world’s largest EV maker, underscores the challenge for smaller firms to scale in export markets.
Geopolitical tensions and potential tariffs add uncertainty, as seen in U.S. and EU restrictions on Chinese EVs. Thailand must balance attracting investment with protecting local production goals. Siamnat Panassorn of the Electric Vehicle Association of Thailand insists Neta’s woes are company-specific, but the broader trend suggests a need for policies that bolster local supply chains and consumer trust.
Looking Ahead
Thailand’s EV sector remains a critical player in Southeast Asia’s green transition, but China’s overcapacity and price wars pose significant risks. Strengthening charging infrastructure, currently at 693 stations, and fostering local battery production could enhance competitiveness. As Thailand navigates these challenges, its ability to adapt policies and support smaller players will determine whether it can achieve its 30% EV production target by 2030.
Photos courtesy of Neta.
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