A new investor group is expected to take over debt-ridden Neta Auto, looking to revive the Chinese battery electric vehicle (BEV) maker in China and Thailand, says the head of the local subsidiary.

Sun Baolong, general manager of Neta Auto (Thailand), assured Thai customers of continued production and sales of Neta cars here, as he predicted all financial troubles would be resolved in the near future.

The company, which recently expanded in Thailand by opening a new spare parts distribution centre for after-sales service, is undeterred by the bankruptcy filing against Hozon New Energy Automobile, the parent company of Neta Auto.

Shanghai Yuxing Advertising Co filed a bankruptcy review petition against Hozon New Energy Automobile, according to daily news, with the case processed by the Intermediate People's Court of Jiaxing in Zhejiang province.

Neta Auto is working on a plan to secure a new investment deal to allay both company and customer concerns over its BEV business.

"We are asking our customers not to panic, as our parent firm is in talks with a new investor group to become our new partner," said Mr Sun.

The new investor may consider acquiring Neta Auto during the negotiations, he said. He declined to name the investor group, saying only it is not Chinese.

Toyota China previously denied a rumour that it would acquire the troubled firm, according to daily news. Neta Auto also said the report was incorrect.

Mr Sun said he was confident Shanghai-based Neta Auto can deal with its financial problems, partly because the company is funded by state-owned Nanning Industrial Investment Co. "This additional funding keeps us walking forward with no losses or other financial troubles," he said.

According to daily news, several suppliers visited Neta Auto to seek payment solutions in March. The company later announced it had settled debt-to-equity agreements with 134 core suppliers totalling US$ 285 million.

In January, Neta Auto held a shareholders' meeting on a new fundraising plan. One investor promised to contribute US$ 430 million, with payment scheduled in April.

However, sources within Neta Auto said recently the company has yet to receive the money.

Tough times in Thailand

Similar to other car manufacturers in the country, Neta Auto (Thailand) is struggling to survive amid a sluggish automotive industry, attributed to buyers' difficulties accessing auto loans given the high level of household debt.

A slowdown in domestic sales remains a challenge for manufacturers, especially with weak consumer purchasing power and banks and car financing companies maintaining strict lending criteria, Mr Sun said earlier.

Neta has been selling cars in Thailand since 2022. It collaborated with Bangchan General Assembly to start assembling BEVs here in March last year, becoming the company's first BEV plant outside China. Annual production is 10,000 units a year.

As of October 2024, roughly 20,000 Neta cars had been sold in Thailand.

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 a year earlier, according to organisers.

Mr Sun said the Thai EV market has potential to grow rapidly, though strong competition led to a price war, making buyers reluctant as they anticipate prices may fall further. He said he expects this pricing tactic to end in 2026.