Bangkok: Neta electric car users in Thailand are preparing to launch a class action lawsuit against Neta-Dealer after experiencing numerous problems with their vehicles. Many users wish to return their cars but fear legal repercussions. In response, the Consumer Council is gathering information to support the lawsuit and seek compensation for affected customers.
According to Thai News Agency, Zhejiang Hozon New Energy Automobile, the parent company of Neta's electric car brand, filed for bankruptcy on June 19. Additionally, several Neta showrooms in Shanghai have reportedly closed, further compounding the concerns of Thai consumers. Mr. Jakchai, leading the group of affected Neta users, highlighted issues such as unresolved complaints, lack of spare parts, and the closure of service centers. Users have been unable to engage with Neta executives in Thailand to find a resolution, and the bankruptcy news has eroded their confidence.
Sopon Noorart, Head of Consumer Protection at the Consumer Council of Thailand, stated that they have received 169 complaints from Neta car users since 2015, focusing on registration issues, maintenance challenges, and service center closures. The council is currently compiling victim information and plans to hold a Subcommittee on Litigation meeting on June 26 to discuss filing a class action lawsuit. The process may take some time due to the large number of affected individuals.
The Consumer Protection Board recently visited NETA Thailand's office in Sukhumvit to clarify the impact of the parent company's bankruptcy on Thai operations. They inquired about customer support, equipment procurement, and spare parts availability. NETA Thailand has been ordered to deliver 32 CDU boxes by June 27, with more deliveries expected in subsequent months. However, there is no agreement on additional remedial measures.
Reports suggest that Mr. Sun Baolong, General Manager of NETA Auto (Thailand) Co., Ltd., recently traveled to China, leaving only two Chinese executives in Thailand. The company currently employs around 30 people, with resignations continuing. It remains uncertain if employees will receive their full salaries at the end of the month.
NETA Auto Thailand is involved in the government's EV 3.0 and 3.5 promotion measures, with over 2 billion baht in subsidies already paid by the Excise Department. However, NETA has fallen short of its production targets, prompting the department to suspend 400 million baht in subsidies. The Excise Department is revising conditions to monitor EV production more closely, requiring reports every two months, with future plans to submit these to the National Electric Vehicle Policy Committee (EV Board).