As per reports, the Thai Ministry of Finance is set to initiate legal proceedings against the Thai subsidiary of Neta Auto, aiming to recoup more than 2 billion baht (roughly equivalent to 400 million yuan) in electric vehicle subsidies granted since 2022. The Thai government alleges that Neta Auto has reneged on its commitment to 'localize production' and has fallen short of the stipulated production benchmarks. The government plans to pursue the recovery of these funds via civil litigation and may consider freezing or seizing Neta Auto's assets within Thailand.

Neta Auto made its foray into the Thai market in 2022, leveraging Thailand's EV 3.0 subsidy initiative. This policy permits the duty-free importation of complete vehicles and offers subsidies of up to 150,000 baht per vehicle, contingent upon the condition of 'importing 1 vehicle and locally manufacturing 1.5 vehicles.' Over the period from 2022 to 2025, Neta Auto has accumulated subsidies totaling approximately 2 billion baht in Thailand. Nevertheless, it has not achieved its production objectives for both 2024 and 2025, with a mere 4,000 vehicles produced in 2025, significantly below the targeted 19,000 vehicles.

In response, the Thai government has urged the National Electric Vehicle Policy Committee to revise pertinent regulations, mandating that automakers submit compensatory production plans biannually. Failure to adhere to these requirements will result in the suspension of subsidy disbursements by the government.