6 days Ago
Undeterred by Washington's new auto tariff policy, Neta Auto Thailand, the Thai subsidiary of Neta Auto, a Chinese battery electric vehicle (BEV) maker, is planning to increase its investment here to support a plan to make Thailand an export hub in Southeast Asia. The company is not concerned about the impact of US President Donald Trump's tariffs because its target markets are in Southeast Asia. The 25% tariff on foreign-made automobiles exported to the US took effect on April 2, while auto parts exporters can expect to face new duties no later than May 3, according to media reports.
Neta Auto will continue to expand its business in Thailand, having collaborated with Bangchan General Assembly Co to commence the assembly of BEVs in March 2024 at a factory in the Bangchan Industrial Estate in Bangkok, said Sun Baolong, general manager of Neta Auto Thailand. This facility is the firm's first BEV plant outside China. Neta did not disclose the additional investment budget, saying only it will increase from 5 billion baht, which was the previous estimate.
"We are determined to make Thailand a hub of BEV production and export in Southeast Asia," he said. The company produces right-hand drive BEVs here, with annual production set at 10,000 units this year. It plans to increase the amount to 50,000 units by 2029, said Mr Sun.
Neta also plans to open its BEV repair and maintenance centre this year to serve customers in Thailand. He said the Thai EV market has the potential to grow rapidly, though strong competition has led to a price war, making prospective buyers reluctant to purchase new cars for fear that prices may fall further. Mr Sun said he expects this pricing tactic to end in 2026.
"EV makers engaging in price wars should see what has happened. It only affects their brands and customers' trust," he said. Neta projects new registrations of BEVs to tally 85,000 units this year, up from 70,137 units in 2024.
A slowdown in domestic car sales is still a major challenge facing car manufacturers as long as consumer purchasing power remains weak and banks and car financing companies maintain their strict criteria when it comes to granting auto loans amid the country's high level of household debt, said Mr Sun. Bookings of Neta vehicles during the 12-day Bangkok International Motor Show, which ended on April 6, fell to 1,219 units from 1,618 units last year..
