Neta To Lay Off 400 Workers in Thailand After 46% Sales Decrease in BEV Slowdown
Chinese electric vehicle (EV) manufacturer Hozon Auto, known for its Neta brand, is set to cut 400 jobs in Thailand as part of a restructuring effort amid declining sales and financial challenges.
The layoffs will primarily impact employees at Bangchan General Assembly, Neta's first manufacturing plant outside China, located in Thailand.
From January to November 2024, Neta sold 6,534 units of its V, V-II, and X models in Thailand, marking a 45.8% decrease compared to the same period in 2023.
This sales decline has significantly affected Hozon Auto's financial performance. In 2023, Neta Auto (Thailand) reported a net loss of 1.8 billion baht (approximately RM236 million), a sharp contrast to the 80.77 million baht (around RM10.61 million) profit recorded in 2022. Over the five years since its establishment (2019-2023), the company has accumulated revenues of 7.78 billion baht (about RM1.02 billion) and losses totaling 1.72 billion baht (around RM226 million).
The Thai automotive market has been challenging for several other manufacturers as well. Overall vehicle sales in Thailand have declined, with a 26.7% year-over-year drop in the first 11 months of 2024.
Despite these challenges, Neta has experienced some successes. In October 2024, the Neta X led Thailand's electric SUV segment with 570 registrations.
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Read More: Neta X: CKD in Thailand, export to Malaysia
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