It has not been smooth sailing for Chinese carmaker Neta in Malaysia but its distributor in our northern neighbours is much worse off as the Thai Finance Ministry is planning to sue them over failure to meet local output quotas, triggering claims to repay the subsidies it received. The news first reported by Nikkei, stating
It has not been smooth sailing for Chinese carmaker Neta in Malaysia but its distributor in our northern neighbours is much worse off as the Thai Finance Ministry is planning to sue them over failure to meet local output quotas, triggering claims to repay the subsidies it received.
The news first reported by Nikkei, stating that the Thai ministry are demanding back the subsidies Neta Auto Thailand has been granted since 2022, with the amount exceeding 2 billion Baht (~RM259 million).
Similar to Malaysian incentives to adopt EV adoption, Thailand’s EV program grants buyers can receive subsidies up to 150,000 Baht (~RM1,900) per vehicle under the condition that the participating brands must meet local production requirements.
The Thai government claims that Neta Auto Thailand failed to meet the requirements, prompting them to demand the subsidies be returned. Having failed to comply, legal action has been set in motion to recover the funds via civil litigation and potential asset seizures.
Given that Neta’s parent company, Hozon New Energy Automobile, is also undergoing legal reorganisation to restructure in China, the civil litigation by the Thai ministry will be against the local distributor as the defendant. However, no timeline was disclosed for the legal action.
If the courts side with the ministry, the authorities will be able to freeze Neta Auto Thailand’s assets and bank accounts to recover the funds.
Following its entry into the Thai market in 2022, Neta climbed to second in the EV segment by 2023. However, the parent company’s restructuring led to delays in spare parts supply that culminated in owners filing a class-action suit.
Neta is not the only Chinese carmaker that failed to meet production quotas and they could be receiving a love letter from the Thai ministry’s lawyers in the near future.
Things in Malaysia haven’t been rosy for the brand as well. Malaysian distributor Intro Synergy announced restructuring operations in June 2025, before reports indicated its Glenmarie facility had shut down in August 2025.
A posting on its Facebook page addressed the facility’s closure. “This move does not signal the end of Neta Auto Malaysia, nor does it affect our commitment to sales and after-sales support.”
“Our restructuring was announced in early June 2025, aligned with evolving market dynamics and global directions of our principal. Customers can be assured that sales, after-sales, warranties and spare parts support remain intact and fully operational,” the statement added.
The aftersales support has been relocated to Accentra Glenmarie, just a few kilometres away from the old facility, to continue serving customers.
Their last Facebook post, dated September 2025, was to promote low-mileage units of the Neta V, with prices starting from RM55,000.
Further rubbing salt in the wound, Grab has also blacklisted all Neta models to be used in its e-hailing service. The decision was made on safety grounds as the models received zero stars in the ASEAN NCAP crash test.