China’s intense EV rivalry exams Thailand’s native manufacturing objectives | USAEMALL.com

Neta’s parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media.

Neta and its Chinese parent did not respond to Reuters’ requests for comment.

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Neta’s share of Thailand’s EV market peaked at about 12 per cent of EV sales in 2023 when the industry was growing, according to Counterpoint Research data, with BYD having a 49 per cent share that year.

In Thailand, a regional auto production and export hub, Chinese brands dominate the EV market with a combined share of more than 70 per cent.

The number of Chinese EV brands has doubled in the last year to 18, placing pressure on those that lack the reach of BYD, which has taken over from Tesla as the world’s biggest EV maker.

In the first five months of this year, new registration of Neta cars – a proxy for sales – slumped 48.5 per cent from the prior year and its share of EV registrations was down to 4 per cent, according to government data.

“Neta’s downturn in Thailand reflects the fragility of second-tier Chinese EV brands both at home and abroad,” said Abhik Mukherjee, an automotive analyst at Counterpoint Research.  

“Intense price competition and the scale advantages of dominant players have made survival increasingly difficult for smaller companies, particularly in export markets, where margins are slim and robust after-sales support is essential.”

In Thailand, Neta’s biggest international market, it sells three models, with the cheapest Neta V-II Lite priced at 549,000 baht (US$16,924) before discounts, compared to market leader BYD’s entry-level Dolphin model that is priced at 569,900 baht.

Thailand’s domestic auto market has become increasingly competitive amid a sluggish economy.

“Some Chinese brands have slashed prices by more than 20 per cent,” said Rujipun Assarut, assistant managing director of KResearch, a unit of Thai lender Kasikornbank.

“Pricing has become the main strategy to stimulate buying.”