NETA dealers demand clarity on unpaid subsidies as up to ฿400 million may be due to dealer network. They warn of a collapsing service network and vanishing warranties. As insurers raise EV premiums and exports lag, Thailand’s electric vehicle dreams face mounting risks and financial turmoil.
Cracks and deeper concerns are emerging in Thailand’s much-vaunted EV industry. In June, attention focused sharply on the future of NETA’s dealership network in the country. The situation escalated with reports that the Chinese-owned company owes dealers ฿400 million. Meanwhile, the company claims it has not received subsidies from the Thai government. EV sales in Thailand for 2025 have increased compared to last year, but much of this growth is driven by steep price discounts. Beyond sales figures, broader worries persist over rising insurance premiums and the overall potential of Thailand’s EV industry as a key export driver.
On Friday, June 13th, 2025, about 18 NETA EV dealers gathered for an urgent meeting with the Excise Department. This meeting marked a critical turning point in the ongoing NETA subsidy controversy.
The dealers came to question the department about unpaid subsidies and mounting debts. According to them, NETA Auto (Thailand) owes more than ฿400 million baht to various dealers. Furthermore, the dealers expressed grave concerns about warranty and battery services disappearing if NETA collapses.
Without subsidies, they argue, NETA lacks the cash flow to repay debts. As a result, thousands of NETA EV owners may face significant after-sales service problems.
Dealers warn NETA collapse could leave thousands without warranty support or battery service
Mr. Chatdanai Khomrutai, a prominent distributor of NETA vehicles, spoke candidly during the meeting. He warned that if the subsidy payments stop, the entire dealer network could collapse. Consequently, parts supply chains would break down, leaving many customers without repair options.
Moreover, warranty services might disappear altogether, jeopardizing vehicle longevity. Dealers stressed that NETA’s failure to pay them since November 2024 worsened this crisis. Therefore, they urged the Excise Department to release withheld subsidies immediately. Otherwise, the NETA brand’s reputation and customer trust could suffer irreversible damage.
The Excise Department’s Deputy Director-General, Panupong Sriket, acknowledged these concerns. He confirmed that the department understood the dealers’ frustrations. However, Panupong emphasized the legal restrictions surrounding government funds.
The department must safeguard taxpayer money and ensure subsidies are paid appropriately. According to him, most subsidy payments had been disbursed on schedule to NETA Auto. Yet, some payments were frozen after liquidity problems surfaced within the company. Notably, NETA failed to provide a mandatory bank guarantee, a key condition for subsidy approval. As a result, the department withheld certain funds pending further review.
Excise officials say NETA failed to guarantee conditions as subsidies were delayed amid liquidity concerns
Panupong urged all parties to act fairly and transparently. While the government strives to support EV growth, it must also prevent the misuse of public funds. At the same time, he encouraged dealers and NETA to seek legal solutions to settle their disputes. The government cannot directly intervene in private contractual conflicts. Still, Panupong promised to facilitate dialogue and monitor developments closely.
The dealer network itself is shrinking rapidly. From around 60 dealers earlier this year, only 40 remain active today. Many smaller outlets closed after failing to receive payments or facing operational losses.
One major dealer even shut down eight of its eleven showrooms and service centres. Employees resigned en masse due to uncertain futures. This contraction signals deep distress within the NETA distribution chain.
If NETA Auto collapses, the effects will ripple far beyond the dealers. Insurance companies may alter their coverage and payment methods. For example, they might require vehicle owners to pay premiums directly.
Such a change would disrupt existing dealer-insurer relationships. Furthermore, consumer confidence in electric vehicles could decline sharply. This scenario risks slowing Thailand’s entire EV industry growth.
Shrinking NETA dealer network sparks fear of service gaps and further EV confidence damage across Thailand
Meanwhile, the wider EV market in Thailand shows mixed signals. EV sales in 2024 dropped compared to 2023, worrying industry observers. However, early 2025 figures indicate a rebound in registrations.
Nonetheless, this recovery largely depends on aggressive price discounts. Without subsidies and deep discounts, many consumers hesitate to switch to EVs. Hence, market stability remains fragile.
Insurance companies also face new challenges with EVs. They report claims costs for EV damage are 50–60% higher than for gasoline cars. Battery repairs and replacements are especially costly and complex.
Consequently, insurers have adjusted premiums and coverage to manage rising risks. For example, Allianz Ayudhya General Insurance (AAGI) recently adapted its pricing models. Lars Heibutzki, AAGI’s CEO, explained the cost gap results mainly from batteries. Although EV claims are more expensive, AAGI remains committed to supporting Thailand’s EV transition.
Despite growing interest in EVs, Thailand’s export volumes remain very low. So far, fewer than 1,000 EV units have left the country. Global trade tensions and tariffs also complicate EV exports.
Moreover, some Chinese EV manufacturers in Thailand have shifted their strategies. Great Wall Motors in Rayong, for instance, plans to boost diesel vehicle production. This pivot indicates combustion engines still play a major role. It also reflects caution amid uncertain EV market dynamics.
Thailand’s EV market faces mounting costs and negligible exports despite temporary sales recovery in 2025
NETA Auto Thailand’s troubles illustrate these broader risks vividly. The NETA V, the company’s flagship EV model, sold 1,090 units by April 30, 2025. This made it the eighth best-selling among 83 EV models in Thailand.
Yet, despite initial success, NETA faces possible collapse in Thailand’s market. The company cut prices drastically in recent months. For example, NETA V-II models now sell for just 299,000 baht ($9,135). However, these discounted units come without any warranty coverage. Dealers also launched “Buy 4, Get 1 Free” promotions to boost sales. Such aggressive discounts reveal deep financial distress.
As a result, the dealer network shrank sharply. From 66 outlets in March 2025, only 53 remained by May. The closures hit mostly smaller and less profitable locations. Staff departures and management resignations followed. Despite efforts to find buyers or investors, no deals have yet materialized.
NETA’s parent company, Hozon New Energy Automobile, faces massive losses overall. The firm reported losses exceeding 100 billion yuan (approximately ฿400 billion). Due to poor performance, Hozon halted operations in Malaysia and Singapore.
Thailand remains their most important market outside China. Still, liquidity issues continue to affect production and dealer payments locally.
Heavy discounting, staff cuts and foreign losses place NETA Thailand at risk of imminent market exit
Even as the overall EV market grows, NETA’s sales have fallen sharply. Early 2025 saw a 37.3% decline compared to the previous year. Meanwhile, total EV registrations across Thailand rose 22.35% to 31,009 units in the first four months.
However, NETA sold only 1,100 units in that period. While the brand has sold around 20,000 EVs in Thailand since launching, its future remains uncertain. These trends highlight the fragility of some Chinese EV brands entering Thailand.
Meanwhile, insurance providers also voice concerns about EV market risks. Apisit Anantanatarat, CEO of Bangkok Insurance, calls the EV sector “high-risk.” In 2024, their EV claims ratio hovered around 67–68%. Although this improved from over 120% two years prior, it remains high.
To manage risks, Bangkok Insurance prices EV policies 15–20% above average. The company also invests in specialized EV repair centres with Chinese partners. This reduces dependence on costly brand-specific workshops.
Apisit warns that price cuts by Chinese EV makers may increase fraud risks. Some owners could deliberately damage or abandon vehicles to claim insurance payouts. Low resale values of inexpensive EVs make this problem worse. Therefore, insurers and regulators must remain vigilant.
Thai insurers brace for higher EV risk as cheap Chinese cars increase fraud and depreciation risk concerns
Viriyah Insurance, holding 66,000 EV policies worth ฿1.5 billion in premiums, reported losses in 2024. Repair and parts costs for EVs were roughly 50% higher than for conventional cars. Meanwhile, premiums increased only about 15%. To address this, Viriyah plans to raise EV insurance rates in 2025. The company also negotiates with distributors to reduce parts prices. New claims processes and an “EV 2+” policy aim to improve repair quality and cost efficiency.
Similarly, Guillaume Mirabaud, CEO of AXA Insurance Thailand, shared insights on their EV portfolio. AXA reported minor losses overall due to data-driven underwriting.
The company avoids aggressive price competition and bases premiums on risk data. AXA continues to support the EV industry despite challenges.
The Thai government aims to transform the country into a regional EV hub. However, the NETA crisis casts doubts on some manufacturers’ financial stability. Questions also arise about subsidy program effectiveness. Supporting industries like insurance, parts suppliers, and service networks appear underprepared. This gap could slow the country’s EV ambitions.
Insurers raise premiums and caution mounts as NETA collapse severely tests Thailand’s EV hub ambitions
Industry experts urge caution but remain optimistic. The EV sector holds tremendous promise for Thailand’s future. Still, financial instability at key players can trigger widespread disruption. Such ripple effects affect dealers, insurers, consumers, and investors alike.
For Thailand to succeed, all stakeholders must act transparently and swiftly. Strong regulation, clear subsidy policies, and industry collaboration are essential. Without these, the EV dream risks faltering just as it gains momentum.
In summary, the NETA dealers’ June 13th meeting revealed deep frustrations. Unpaid subsidies and debts threaten their survival. The Excise Department faces tough choices balancing legal safeguards and industry support.
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At the same time, Thailand’s EV industry confronts challenges ranging from market volatility to insurance risks. While early 2025 data shows recovery signs, heavy discounts and manufacturer struggles raise concerns.
Insurers are adjusting their prices but face rising claims costs. Export volumes remain low amid global trade tensions. Most importantly, the fate of companies like NETA will shape the country’s EV future. Industry leaders and government agencies must collaborate quickly. Otherwise, Thailand’s ambition to lead Southeast Asia’s EV revolution could stall, reverse or even crash.
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Further reading:
Top Thai insurer says no more new policies for EV cars. Later, it emphasised renewals case by case
Lack of coherence in government policy is the root cause of Thailand’s massive economic problems
Disturbing questions that must be confronted over Thailand’s reeling economy are China and EV cars
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