China’s electric vehicle (EV) war is no longer just a local fight. It’s spilling into Southeast Asia, especially Thailand. As China pushes its carmakers to go global, Thailand is now feeling the heat. But this heat is burning more than building.
Thailand Wanted to Lead
In 2021, Thailand announced a bold plan: make 30% of its cars electric by 2030. The country, known as a major car export hub, welcomed Chinese EV makers with open arms. They offered tax cuts and incentives if the companies promised to produce locally.
It looked like a win-win. Over $3 billion came in from Chinese brands, including Neta and BYD. But now, that plan is facing trouble.
Neta’s Crash in Thailand
Neta, one of the first Chinese brands in Thailand, entered the market in 2022. It started well. In 2023, it held about 12% of the EV market in Thailand. But that number has now dropped to just 4%.
The reason? Neta couldn’t meet Thailand’s production rules. It had to produce the same number of EVs locally as it imported. When it failed, the Thai government pulled back payments.
Worse, Neta’s parent company in China is now in bankruptcy. Dealers in Thailand say they’re owed over 200 million baht. Some have stopped selling. Customers are complaining about bad service. One dealer said, “I stopped ordering cars in September. I knew something was wrong.”
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China’s Problem, Thailand’s Risk
This isn’t just about one brand. China is producing too many EVs. The big players like BYD are winning. Smaller brands are losing the price war. To survive, they move abroad. But when they struggle in new markets, countries like Thailand suffer too.
In fact, the number of Chinese EV brands in Thailand has doubled in one year. But most can’t match BYD, which now controls almost 50% of the market. Prices are dropping fast. Some brands cut prices by over 20% just to stay in the game.
What Happens Next?
Thailand’s Board of Investment recently gave EV makers more time to meet production targets. But now they must produce 1.5 times more to make up for delays. That’s not easy in a slow market.
Officials say Neta’s problems are not the country’s fault. But experts warn Thailand should be careful. One mistake can hurt the whole market.
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