Thai Excise Department Intensifies Oversight of Neta’s EV Scheme Compliance as Production Shortfall Persists
Chinese EV brand faces potential penalties after failing to meet obligations under Thailand’s EV 3.0 support programme
Thailand’s Excise Department has stepped up monitoring of Neta Auto (Thailand) after the Chinese electric vehicle manufacturer fell significantly short of its production and compensation obligations under the government’s EV 3.0 incentive scheme, government sources said.
Neta has produced only about four thousand seven hundred locally assembled compensation vehicles, leaving approximately twenty-four thousand units outstanding under the terms of the support measures, prompting formal discussions with regulators over its next steps.
The company, which imported over sixteen thousand EVs into Thailand and received more than two billion baht in state subsidies tied to reduced excise tax rates, has been unable to ramp up production at its Bangchan General Assembly partner plant because its parent company in China declared bankruptcy and stopped shipping parts for assembly.
The Excise Department summoned Neta representatives to explain the shortfall and has provided additional documentation on compliance requirements under the EV 3.0 and EV 3.5 schemes, which were approved by the Cabinet and the National Electric Vehicle Policy Committee to support local EV industry development.
At this stage, no lawsuit has been filed and no damages have been formally demanded, but the department has emphasised that failure to meet obligations could trigger substantial penalties.
These include the requirement to return state subsidies and excise tax benefits provided when EVs were taxed at a reduced rate of two percent instead of the standard eight percent.
Penalties, surcharges and excise tax reversals could together amount to up to eighty-five percent of a vehicle’s price if conditions are ultimately deemed unmet.
Officials noted that last year’s revisions to the EV support framework relaxed certain conditions, such as allowing production under a partner factory in the EV 3.5 scheme to count toward EV 3.0 obligations.
Neta continues to participate in the EV 3.5 programme, even as regulators and the company explore options to satisfy outstanding production targets or resolve the obligations through alternative arrangements.
Should the company fail to comply fully, legal action could follow, including seizure of guarantees and assets to satisfy outstanding fiscal obligations.
Neta has produced only about four thousand seven hundred locally assembled compensation vehicles, leaving approximately twenty-four thousand units outstanding under the terms of the support measures, prompting formal discussions with regulators over its next steps.
The company, which imported over sixteen thousand EVs into Thailand and received more than two billion baht in state subsidies tied to reduced excise tax rates, has been unable to ramp up production at its Bangchan General Assembly partner plant because its parent company in China declared bankruptcy and stopped shipping parts for assembly.
The Excise Department summoned Neta representatives to explain the shortfall and has provided additional documentation on compliance requirements under the EV 3.0 and EV 3.5 schemes, which were approved by the Cabinet and the National Electric Vehicle Policy Committee to support local EV industry development.
At this stage, no lawsuit has been filed and no damages have been formally demanded, but the department has emphasised that failure to meet obligations could trigger substantial penalties.
These include the requirement to return state subsidies and excise tax benefits provided when EVs were taxed at a reduced rate of two percent instead of the standard eight percent.
Penalties, surcharges and excise tax reversals could together amount to up to eighty-five percent of a vehicle’s price if conditions are ultimately deemed unmet.
Officials noted that last year’s revisions to the EV support framework relaxed certain conditions, such as allowing production under a partner factory in the EV 3.5 scheme to count toward EV 3.0 obligations.
Neta continues to participate in the EV 3.5 programme, even as regulators and the company explore options to satisfy outstanding production targets or resolve the obligations through alternative arrangements.
Should the company fail to comply fully, legal action could follow, including seizure of guarantees and assets to satisfy outstanding fiscal obligations.
