BYD, the world’s largest electric vehicle manufacturer, has been facing backlash in Thailand due to its aggressive discounting strategies. The Thai consumer protection office has received around seventy complaints from customers who feel they have overpaid for their Chinese electric vehicles. The government has stepped in, with Prime Minister Srettha Thavisin instructing BYD to better manage customer expectations and ensure fair pricing. The goal is to enhance the way the consumer marketplace’s expectations are managed, and the government has promised reasonable prices and support for consumers who have suffered losses.
Rever Automotive, BYD’s sole distributor in Thailand, has not responded to inquiries about the investigation. Rever Automotive oversees a network of more than 100 dealerships. The investigation was initiated after a complaint was made about a salesperson informing a customer that the car’s price would increase when a promotion ended. The complaint was sent to the government for review, but the dealership managed to reduce the expenses even further.
Many BYD owners in Thailand have expressed their dissatisfaction with the significant price reductions made by the company. One owner took to Facebook to share their frustration, stating that the car they bought for 1.19 million baht was now being sold for 859,000 baht. Another owner even uploaded a video where they wrote disparaging remarks about BYD on their car’s hood with a marker. The discontent among owners is evident, and it raises concerns about the company’s reputation in Thailand.
Rever Automotive recently advertised several models on its website at incredibly low prices, starting from 340,000 baht. Passakorn Thapmongkol, a senior officer of Thailand’s Consumer Protection Board, met with Rever executives to request relevant documentation related to the discounted plan. This indicates that the authorities are actively investigating the situation and taking steps to protect consumers.
Thailand is an important market for BYD, as it is the company’s most significant market outside of China. However, the company faces challenges in Europe due to high taxes imposed on its products. The European Union imposes a 17.4% tax on BYD’s vehicles, making it crucial for the company to establish itself effectively in Thailand to support its global expansion goals.
Counterpoint, a research firm, reveals that BYD is currently the third-largest player in the passenger car industry and controls 46% of Thailand’s electric vehicle market. However, the negative sentiment among customers in Thailand may impact BYD’s market position and overall reputation.
In conclusion, BYD’s aggressive discounting strategies have sparked complaints from customers in Thailand. The government has intervened to ensure fair pricing and better customer expectations management. Rever Automotive, BYD’s distributor, has not responded to inquiries, and the authorities are actively investigating the situation. The dissatisfaction among BYD owners raises concerns about the company’s reputation in Thailand, which is an important market for its global expansion plans. BYD’s success in Thailand is crucial, especially considering the challenges it faces in Europe due to high taxes.
