Neta Auto Thailand, a Chinese electric vehicle (EV) manufacturer, is currently facing financial difficulties and pressure to comply with the Thai Government's EV support scheme.

The Government is considering measures that could allow Neta to continue operations.

In response to recent reports, Neta denied allegations of financial insolvency following news regarding liquidity concerns at its parent company, Hozon Auto, in China.

The company stated that the ongoing debt dispute with Yuxing Advertising is a legal process and does not constitute an insolvency filing.

Paopoom Rojanasakul, Deputy Finance Minister, said that the Ministry and the Excise Department are monitoring Neta's financial condition. The company could lose eligibility for the EV 3.0 subsidy if it does not meet the requirement of producing 1.5 times the number of vehicles it imported into Thailand by end 2025.

The Excise Department is preparing a proposal to present to the National Electric Vehicle Policy Committee (EV Board), which could grant Neta an extension under the EV 3.5 scheme. This would extend the production deadline to the end of 2027.

The EV 3.5 scheme includes more demanding conditions, such as a production target of two to three times the original quota. Subsidies would not be provided until these targets are met. The company would still be eligible for a reduction in excise tax from 8% to 2%.

"This option would help prevent disruption in the EV sector, as the closure of any company at this stage could affect the broader market and consumer confidence," a Finance Ministry source stated.

The EV subsidies and tax incentives are intended to support the expansion of the EV industry in Thailand by promoting investment in battery production, manufacturing, and employment.

According to sources, Neta's dealer group is expected to meet with the Excise Department on 13th June to review the situation and discuss possible next steps.