BANGKOK – Zhejiang Hozon, the Chinese company behind the Neta electric vehicle brand, has started bankruptcy proceedings, worrying many in the electric vehicle sector, especially in Thailand, where Neta has seen strong growth.
Hozon owes nearly 10 billion yuan (about USD 1.39 billion), leaving Thai dealers facing tough questions about ongoing business, warranty support and customer confidence.
Hozon’s money problems grew worse when Shanghai Yuxing Advertising Co. filed a bankruptcy petition on May 13, 2025, due to unpaid exhibition fees. The Jiaxing Intermediate People’s Court accepted the case and appointed Zhejiang Zicheng Law Firm to handle the restructuring.
Hozon has posted losses topping 100 billion yuan (roughly 400 billion baht) between 2021 and 2023. Earlier this year, Hozon failed to secure between $550 million and $620 million in a Series E funding round.
The impact has been immediate. Neta has closed several showrooms in Shanghai, and staff protests over unpaid wages have taken place. At times, production has halted, and since November 2024, over 2,900 workers have lost their jobs, highlighting the depth of the company’s crisis.
Fallout in Thailand
Thailand, the top international market for Neta, is already seeing trouble. Neta Auto Thailand received 400 million baht in government funding late last year but has paused operations because of cash flow problems and a 43 percent slide in sales. The company still has to produce about 20,000 vehicles to meet its subsidy deal, but reaching this goal now looks out of reach.
Dealers in Thailand are feeling the pressure. The network dropped from 66 locations in March 2025 to just 53 in May, and more closures could follow. A major dealer has already closed eight out of eleven showrooms and service centres, blaming a lack of trust in Neta’s management. Some dealers say they are owed up to 400 million baht in state subsidies, putting spare parts and service support at risk.
In early June, Neta Thailand cut the price of the NETA V-II electric car to 299,000 baht ($9,135). However, these cars came without a warranty, raising more doubts about the company’s future in Thailand. Insiders say Neta Thailand’s leadership has tried to sell the local operation to Thai investors, valuing it between 1.2 and 2 billion baht, but no deals have been made, casting doubt on the business’s viability.
Neta Auto Thailand has tried to calm fears, denying bankruptcy in May and calling the legal process a standard move to deal with debt. The company says it is working to return to normal business by converting debt into shares, building partnerships and seeking new investment. Plans include a new distribution centre to improve spare parts supply, which should speed up repairs and support customers.
Still, uncertainty is high. General Manager Xun Paolong admits the Thai branch’s future depends on whether the parent company can recover. Dealers have met with the Excise Department to press for answers about unpaid subsidies and warn about a shrinking dealer network. The Excise Department is looking into the payment delays, adding more pressure for Neta in Thailand.
Wider Impact on Thailand’s EV Market
Neta’s troubles have hit while Thailand is trying to become a leader in electric vehicle production and sales in Southeast Asia. The country has attracted several Chinese EV brands, including Neta, thanks to strong government support. Now, Hozon’s collapse raises concerns about whether these investments are secure. Insurance costs for EVs are climbing. Worries about parts and warranty service could hurt customer trust and slow down EV adoption.
Industry watchers think Neta’s problems could cause more Thai dealerships to close, affecting the growth of the local EV sector. Allianz Ayudhya General Insurance has changed its policies to handle the added risk, showing a more careful approach among insurers. At the same time, competitors like BYD are cutting prices in China, which adds more pressure for Neta.
With Hozon going through court-led restructuring, Neta’s future in Thailand is unclear. Its global plans, including a promise to invest over 4 billion yuan in 2025, now look shaky. Dealers are focused on collecting subsidies, keeping service available and reassuring buyers. For customers, the low prices are attractive, but after-sales support remains in doubt.
Neta also had a presence in Chiang Rai, Thailand, with a dealership and showroom, located in Mueang Chiang Rai, but it has now closed.
NETA vehicles, including the newer NETA X, are manufactured in Thailand, with sales extending to Chiang Rai and beyond. The NETA X, a small SUV, is priced between 739,000–799,000 baht in Thailand.
