China’s EV Rivalry Puts Thailand’s Local Production Strategy at Risk

Thailand has been positioning itself as Southeast Asia’s electric vehicle (EV) manufacturing hub, setting ambitious targets to make 30% of its auto production electric by 2030. With generous government incentives and clear rules — such as the “import one, build one” policy — the country attracted billions in investment, particularly from Chinese EV companies.

However, China’s internal EV price war is now testing the limits of Thailand’s strategy. While large Chinese brands like BYD have dominated Thailand’s EV market, holding almost 50% share, smaller players like Neta have failed to deliver on local production commitments.

Neta, a Chinese EV startup that entered Thailand in 2022, was unable to meet the government’s requirement to start domestic production on time. As a result, Thai authorities revoked its tax incentives. The situation worsened when Neta’s parent company, Hozon New Energy, filed for bankruptcy in China. The fallout included unpaid debts of over 200 million baht to local dealers and a sharp drop in market share from 12% to just 4%.

This incident is more than a business failure — it’s a warning sign. While the Thai government has downplayed Neta’s collapse as an isolated event, experts say it reveals deeper risks in overrelying on aggressive foreign startups, especially from markets under extreme price pressure like China.

The ongoing EV price wars in China — where discounts reach up to 20% — have made competition brutal. Smaller brands often expand too quickly, offering vehicles at unsustainable prices just to survive. When such companies operate abroad without strong foundations, the risk of sudden collapse becomes real — and Thailand is now experiencing that firsthand.

This raises key concerns:

Is Thailand benefiting from sustainable EV partnerships?

Are local jobs and supply chains being strengthened?

Or is the country becoming a testing ground for foreign brands dumping cheap products?


To ensure long-term success, Thailand must strengthen its EV policy by:

Enforcing stricter compliance on production timelines

Promoting technology transfer and local workforce training

Supporting local suppliers to reduce dependency

Attracting more diversified investments beyond China


In conclusion, while Chinese EV investment has fueled Thailand’s green transition, it has also exposed structural weaknesses in policy execution. If Thailand wants to become more than just a regional sales hub and truly build a resilient EV ecosystem, it must balance openness with accountability — or risk losing its industrial momentum to short-lived foreign promises.