BYD Acquires 20% Stake In Thailand Amidst Dealer’s Discount Controversy

China's BYD announced on Saturday that it will acquire a 20% stake in its Thai distributor, Rever Automotive. According to BYD, Thailand represents BYD's largest market outside of China, where the company is a dominant player in the electric vehicle industry.

Since its entry into the Thai market in 2022, BYD has risen to become the leading EV brand in the country. BYD now commands over 40% of Thailand’s market for "new energy vehicles," which includes both battery electric vehicles and plug-in hybrids.

Furthermore, BYD had also recently opened its first Southeast Asian factory in Thailand with an investment worth $490 million (RM2.3 billion). This new facility will have the capacity to produce 150,000 vehicles annually and will create 10,000 jobs.

Despite these achievements, BYD has faced challenges. Recent discounts offered by the company in Thailand have caused dissatisfaction among consumers, prompting an investigation by the Thai consumer protection agency.

Just before the new factory's opening, the Thai government announced it would look into aggressive discounting practices by dealers, following reports that a BYD representative had misled a customer about the stability of the vehicle's price, which subsequently dropped further.

The consumer protection organisation has received 70 complaints since the probe began. Rever's social media profiles have highlighted some major price reductions, including the BYD Atto 3 Extended Range going from THB 1,199,900 (RM 155,000) to THB 859,900 (RM 111,000) and the Dolphin Extended Range lowering from THB 859,999 (RM 111,200) to THB 699,900 (RM 91,000).

Thailand's Prime Minister, Srettha Thavisin, expressed her concern about the unexpected discounts at a meeting with BYD Chairman Wang Chuanfu on Friday. According to the prime minister's office, Wang informed impacted customers that BYD would support them and assure more stable and appropriate pricing in the future.

Chinese EV producers, such as BYD and Tesla, commonly employ aggressive price techniques to gain market share. This fierce competition has resulted in a lengthy pricing war, reducing profit margins.

Source: REUTERS