Struggling Chinese EV brands go global to flee brutal price war at home

Once a rising star among China’s electric vehicle startups, Neta Auto is facing backlash in its largest overseas market as its parent company enters bankruptcy restructuring — fueling concerns that China’s EV price war is forcing smaller players to expand abroad before they’re financially stable. 

Neta gained traction in Thailand by offering perks such as free home-charging equipment and extended warranties. But in recent weeks, its Thai Facebook page has been flooded with complaints about after-sales support and concerns over the parent company’s financial health. 

Thai businessman Chaicharn told Rest of World he did extensive research before buying a Neta EV in January last year for 549,000 baht ($16,973). But soon after, he was told a replacement part was indefinitely unavailable and that a local service center had closed. After learning of the company’s bankruptcy proceedings, he initiated steps to file a refund. 

“Who’d have known? They were among the bestsellers in China,” Chaicharn said. He asked to be identified only by his first name due to his impending refund request. 

In China, it’s not uncommon for EV buyers to lose after-sales support when companies fold amid the ongoing price war. But analysts say Neta’s troubles mark a turning point: The fallout is now spilling overseas, threatening the reputation of Chinese automakers. More than 30 Chinese EV brands were actively expanding abroad last year — many before turning a profit at home. 

Last month, Neta’s parent company, Hozon New Energy Automobile, confirmed it had entered bankruptcy restructuring in China. Earlier that month, viral videos showed employees staging a sit-in over unpaid wages. 

China’s top EV maker, BYDiBYDBYD Auto is a Chinese carmaker that became the world’s leading EV manufacturer in 2023, competing with Tesla for market share and global attention.READ MORE — which overtook Tesla in global sales last year — has weighed in: “If companies aren’t doing well locally, expanding overseas may not be a good thing,” Li Yunfei, BYD’s general manager of brand and public relations, said at a June 6 industry forum. “This can damage the overall image of Chinese brands.” 

China’s EV market has undergone rapid consolidation. The number of domestic EV makers fell from 487 in 2018 to about 130 in 2024. Fewer than 15 brands will survive by 2030, according to a forecast from New York-based consulting firm AlixPartners. China’s top economic planning agency warned BYD and other Chinese EV companies last month to not sell cars below cost.  

Neta’s international push was a sign of desperation, Lei Xing, a U.S.-based China auto industry consultant, told Rest of World. “The reason behind going overseas [was] purely to save business at home,” he said. “In general, I don’t think that strategy works.” 

He pointed to other struggling Chinese EV makers — including Aiways, Skywell, Rox Motor, and Gecko Motors — which have also pivoted overseas in hopes of staying afloat. Aiways, for instance, decided to suspend domestic operations entirely, targeting Europe instead. 

“We’re not going to sell in China because the price war is incredible in China,” an Aiways spokesperson told Reuters.

WM Motor, another Chinese EV brand that began bankruptcy reorganization nearly two years ago, is still struggling to provide after-sales support to drivers in China. Its expansion plans in Europe and the Middle East have stalled. 

Founded in 2018, Neta entered Thailand in 2022 and sold more than 12,000 vehicles in 2023 — the second-best in EV sales after BYD. Its success was aided by generous Thai government subsidies tied to local production — a key incentive helping Chinese EV makers gain a foothold in Southeast Asia. 

With that success, Neta pinned its hopes on overseas markets. The company aimed to sell half its vehicles abroad and turn a profit by 2026, its founder Fang Yunzhou told South China Morning Post in December. By then, signs of strain had already emerged: The company laid off staff and slashed administrative costs. In 2024, its sales in China dropped nearly 50% year over year. 

Sales in Thailand also slumped. After selling nearly 8,000 cars in 2024, Neta sold just 1,256 units in the first five months of this year — a 43% drop year on year, according to Thailand’s state broadcaster NBT World. Thai media reported layoffs of hundreds of local staff in late 2024 and the closure of 20 out of 60 showrooms earlier this year. 

Neta did not respond to Rest of World’s requests for comment. In a public statement in June, it said its company is undergoing restructuring and seeking new investment. Once funding is secured, Neta plans to “amplify its focus on key markets,” including Thailand, Malaysia, and Brazil.   

The Thailand Consumers Council told Rest of World it has received a surge of complaints against Neta this year, including reports of unavailable spare parts, shuttered service centers, and consumers having to repair vehicles themselves. There have been a total of more than 220 complaints since the brand entered the market in 2022. The council is now supporting the government consumer protection agency’s investigation into Neta’s operations in the country. 

A person familiar with Neta’s overseas operations, who requested anonymity because they were not authorized to speak with media, told Rest of World the company has begun offering deeper discounts and boosting dealer commissions in at least one foreign market in a bid to revive sales. 

In Thailand, Neta’s case could reshape national policy. Last month, the government proposed tightening EV subsidy rules, which would affect about 18 Chinese EV brands operating in the country. 

Despite the uncertainty, Chinese EVs remain popular in Southeast Asia thanks to their affordability. Chinese models are typically as much as 20% cheaper than Japanese and Western alternatives, according to global market research firm Kadence International. 

But low prices may not be enough to sustain growth. 

“Competitive pricing alone will not be sufficient [to win over new customers],” Kriengkrai Techakanont, an economics professor at Thammasat University in Bangkok, told Rest of World. 

“Service networks and long-term support will play an increasingly important role in consumer decision-making when choosing an EV brand.”