Neta Thailand vows to clear debt with suppliers in two months
Neta Thailand to resume full BEV production in June after settling supplier debts. The firm aims for 10,000 sales in 2025 and expansion in ASEAN.
Neta Auto (Thailand) Co Ltd on Monday vowed to continue electric vehicle manufacturing in Thailand at full speed from June, after spending the next two months clearing its debts with suppliers and dealers.
Sun Baolong, General Manager of Neta Auto Thailand, unveiled the business plan of the Chinese battery EV manufacturer on the first day of the Bangkok International Motor Show at Impact Challenger in Muang Thong Thani.
Sun stated that Neta Auto Thailand’s parent company, Neta Auto in China, had successfully settled its debts with all creditors.
Neta Auto has reportedly reached an agreement with 134 core domestic suppliers to convert a significant portion of their outstanding claims into equity in its parent company, Hozon Auto. The total value of this swap is said to exceed RMB 2 billion (approximately USD 275 million).
Under the proposed plan, 70% of the suppliers' claims will be converted into equity, while the remaining 30% will be treated as interest-free debt, to be repaid in 15 monthly instalments starting in May 2025.
In Thailand, Sun said Neta Auto Thailand would start repaying its debts to dealers and suppliers in April and May, before resuming full BEV production in June.
Sun clarified that its contract to obtain a 10-billion-baht loan from Nissan Leasing (Thailand) was not part of a debt restructuring plan. Instead, the loan would be used to provide inventory financing for its dealers and mortgage loans for Neta EV buyers.
According to Sun, Neta Auto (Thailand) is currently manufacturing the Neta VII model at its Bangchan General Assembly factory. Production of the Neta X model is set to begin in July.
Neta Auto Thailand aims to sell 10,000 BEVs this year, with a long-term goal of reaching 50,000 BEV sales across six models by 2029.
Sun added that Neta Auto would use Thailand as its hub for BEV manufacturing and exports to ASEAN nations.
He also stated that Neta aims to become Thailand’s second-largest BEV seller this year and plans to open a centre for EV battery maintenance.
