BYD's EV discount sparks backlash in Thailand

The Thai consumer protection agency has been inundated with approximately 70 complaints following the initiation of an investigation into aggressive discounting practices by BYD dealers in Thailand. This probe was sparked by concerns that some buyers felt they had overpaid for their Chinese electric vehicles due to the sudden and significant price reductions.

The situation has garnered high-level attention, with Prime Minister Srettha Thavisin personally addressing the issue during a meeting with BYD Chief Executive Wang Chuanfu. Wang was in Thailand to commemorate the opening of BYD’s first Southeast Asian factory. During their meeting, the Prime Minister urged Wang to improve the management of customer expectations regarding pricing and to ensure that local buyers are adequately protected.

In response, Wang provided assurances that future pricing would be more appropriately managed and that affected customers would receive support. This commitment was relayed by a government spokesman, highlighting the seriousness with which the Thai government is treating the matter.

The investigation into BYD’s dealers was initiated following a specific complaint alleging that a sales representative had falsely claimed that car prices would increase after a discounting campaign ended. Instead, the dealership further reduced prices, leading to frustration among recent buyers who felt they had been misled.

The situation has led to a significant backlash on social media platforms, where some BYD owners in Thailand have expressed their disappointment and anger over feeling short-changed by the deep discounts. One owner shared their frustration on Facebook, lamenting that the BYD Atto 3 they had purchased for 1.19 million baht was now being sold for 859,000 baht. Another disgruntled owner went so far as to deface their vehicle, scrawling disparaging remarks about BYD on the hood of their EV and vowing never to buy from the brand again.

The scale of the discounts is substantial, with Rever’s website, BYD’s sole distributor in Thailand, showing price reductions of up to 340,000 baht (approximately USD 9,300) on some models. Rever Automotive, which manages a network of over 100 dealerships, has not yet responded to requests for comment on the situation.

Passakorn Thapmongkol, a senior official at Thailand’s Consumer Protection Board, confirmed that the agency has met with Rever officials and requested documentation related to the discounting scheme. He noted that the number of customer complaints continues to grow as more affected buyers come forward.

This controversy comes at a crucial time for BYD in Thailand, which represents the company’s largest market outside of China and is pivotal to its global expansion plans. The situation is particularly significant given the recent imposition of 17.4 per cent tariffs on BYD by the European Union, potentially making Thailand an even more important market for the company.

BYD’s strong position in Thailand’s automotive market is evident from its 46 per cent share of the country’s EV segment in the first quarter of the year. The company has also established itself as the third-largest player in the passenger car market, according to research firm Counterpoint.

The ongoing investigation and the resulting customer dissatisfaction pose significant challenges for BYD as it seeks to maintain and expand its market presence in Thailand. The company’s response to these issues and its ability to address customer concerns will likely play a crucial role in shaping its future success in the Thai market and potentially influence its reputation in other international markets as well.

This situation underscores the complexities and potential pitfalls of aggressive pricing strategies in the highly competitive EV market, particularly for international brands operating in emerging markets. It also highlights the importance of transparent communication with customers and the need for companies to carefully consider the long-term implications of their pricing decisions on customer loyalty and brand perception.