Neta parent firm, Zhejiang Hozon New Energy Automobile has officially entered into bankruptcy proceedings, reported Reuters citing Chinese state broadcaster CCTV.
A creditor, Shanghai Yuxing Advertising has last month filed a bankruptcy petition against Hozon citing unpaid exhibition printing fees, reported Thailand news site The Nation, citing the Chinese national enterprise bankruptcy disclosure platform. Meanwhile, several Neta showrooms in Shanghai have reportedly closed.
Meanwhile in Thailand, the number of Neta dealers has dropped from 60 to 40 and this number is set to continue to decline, largely due to ongoing financial losses and liquidity problems, reported the Bangkok Post.
Two weeks ago, Neta Auto Thailand GM Sun Baolong announced that the company was undergoing a debt and organizational restructuring, stating that “as long at Neta stays remains in China, Neta will stay in Thailand,” and so the latest reports of its bankruptcy filing in China casts doubts on the brand’s presence in the kingdom.
Amid Neta’s troubled finances, a separate Bangkok Post report indicated that the Chinese carmaker may have to repay the subsidies if they fail to comply with the conditions of the subsidies, according to Thai deputy finance minister Paopoom Rojanasakul.
Subsidies from the Thai government are given on the condition that carmakers build manufacturing plants for the production of EVs in the country to eventually replace imports, and if a company cannot meet this requirement, it must return the subsidy funds, Paopoom said.
Additionally to fulfill the requirement, companies need to produce vehicles domestically in Thailand at a ratio of 1.5 locally made BEVs for every imported vehicle by 2026, the kingdom’s finance ministry noted, according to the news outlet.
Based on Thailand’s EV production requirements, Neta needs to produce 19,000 EVs in Thailand this year, but has so far produced just 4,000 units, according to the publication.
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