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BYD’s Pricing Controversy: PM Srettha Thavisin Demands Fair Practices in Thailand

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Car enthusiasts flocked to this year’s Bangkok International Motor Show on March 26, as the city buzzed with excitement. (Pattarapong Chatpattarasil)

Prime Minister Srettha Thavisin recently called upon BYD, China’s electric vehicle titan, to safeguard local consumer interests and implement a fair pricing strategy. This move came after a number of BYD dealers offered dramatic discounts, causing a stir among customers who had previously purchased vehicles at higher prices. During a meeting with BYD Chief Executive Wang Chuanfu on Friday, PM Srettha emphasized the importance of managing customer expectations and ensuring buyers are protected.

Mr. Wang was in Thailand to celebrate the grand opening of BYD’s first Southeast Asian factory in Rayong on Thursday. The Prime Minister also urged the company to leverage local supply chains and maximize production output as per their agreement with the Thai government.

In response, Mr. Wang assured that future pricing strategies would be fair, and that the company would seek ways to support customers adversely affected by the recent price cuts. He emphasized BYD’s commitment to the Thai market, highlighting that the company’s Thai factory produces several car parts and employs new technologies in production.

Mr. Wang shared that the factory currently has a production capacity of 150,000 electric vehicles annually, with full capacity expected to be reached in about two years. The company also plans to expand its investments in Thailand and hire additional workforce.

Despite these assurances, BYD officials in Thailand and its exclusive distributor, Rever Automotive, which boasts a network of over 100 dealerships, did not immediately comment on the situation when approached by Reuters.

The Thai government launched an investigation into BYD’s dealers following a complaint that a sales representative had misled a customer by suggesting prices would rise post-discount campaign. Instead, prices were slashed further, sparking uproar among existing BYD owners.

The Office of the Consumer Protection Board (OCPB) has initiated a probe into the aggressive discounting by BYD dealers, which left many buyers feeling they had overpaid. Some disgruntled BYD owners took to social media to express their disappointment. One owner lamented on Facebook, revealing that she had purchased a BYD Atto 3 for 1.19 million baht, only to find it now selling for 859,000 baht.

Another frustrated owner uploaded a video of himself scrawling harsh criticisms of BYD in thick blue marker across the bonnet of his EV, declaring, “I am never buying this car brand again.”

Rever’s website showed some models currently being discounted by as much as 340,000 baht. Passakorn Thapmongkol, a senior official at the OCPB, stated that the agency had already met with Rever officials and requested documents related to the discounting strategy. “More customers are gradually coming in to file complaints,” he added.

Thasornatt Thanittipun, secretary-general of the OCPB, remarked that they planned to invite both the dealer and the affected consumers for discussions to resolve the dispute. “While private companies have the right to initiate discounting schemes, consumer complaints necessitate an investigation to hear both perspectives,” he said.

Wissanu Wongsinsirikul, secretary-general of the Trade Competition Commission, stated that selling products below production costs without valid business reasons could violate the Trade Competition Act. However, such steep discounts are permissible if based on legitimate business grounds, such as clearing inventory of outgoing models for new ones.

Thailand ranks as BYD’s largest market outside of China and is pivotal in the automaker’s global expansion plans, especially after facing a 17.4% tariff imposed by the EU. According to research firm Counterpoint, BYD commanded a 46% share of Thailand’s EV segment in the first quarter, making it the third-largest player in the passenger car market.

33 Comments

  1. John Smith July 5, 2024

    It’s great that the Thai government is holding BYD accountable for fair pricing, but do you think these measures will actually work?

    • AutoFanatic1988 July 5, 2024

      I doubt it. Big corporations always find loopholes. This might just be a PR move.

      • Samantha P. July 5, 2024

        I agree with AutoFanatic1988. Unless there’s strict enforcement, it’s just words.

      • John Smith July 5, 2024

        You’re right. It needs actual follow-through, but at least it’s a step in the right direction.

  2. Emily D. July 5, 2024

    I’m one of those customers who got a raw deal with the price cuts. I’m furious!

    • Michael Johnson July 5, 2024

      Sorry to hear that, Emily. Have you joined any of the social media groups for affected customers?

      • Emily D. July 5, 2024

        Yes, I did. It’s heartening to see other people rallying for compensation.

  3. Techie123 July 5, 2024

    From a business standpoint, isn’t it normal to have discounts to clear old stock? Why such a fuss?

    • Laura K. July 5, 2024

      Because it misleads people! If they knew about the upcoming discount, maybe they would have waited before purchasing.

    • Economics_Guru July 5, 2024

      It’s not just a normal discount – these were massive cuts that disrupted the market. It’s about transparency.

  4. Simon July 5, 2024

    Can we talk about the legal implications here? Could BYD actually be sued for this?

    • LegalEagle July 5, 2024

      Definitely possible. Misleading customers can qualify as unfair business practice and could attract penalties.

  5. Gigi July 5, 2024

    Wow, look at that guy vandalizing his own car. But seriously, doesn’t this hurt BYD’s reputation?

    • PeteRocks July 5, 2024

      Absolutely. Customer trust is hard to rebuild once broken.

      • Bethany L. July 5, 2024

        It’s a demonstration of how betrayed people feel. Reputation damage is inevitable.

  6. Matt7 July 5, 2024

    Why blame BYD when it’s the dealers who decided to slash prices?

    • Katie Y. July 5, 2024

      BYD should control their dealers better. Ultimately, they need to ensure fair practice.

    • DealerInsider July 6, 2024

      In some cases, manufacturers give the dealers a nudge. They might have more control here than you think.

  7. Ben S. July 5, 2024

    Why didn’t BYD’s distributor Rever Automotive comment on this whole mess?

    • Alex W. July 5, 2024

      Maybe they’re figuring out their next move. Silence is not a good look, though.

    • Johnny T. July 5, 2024

      Typical corporate strategy: Stay silent till the storm blows over.

  8. ElectricCarLover July 5, 2024

    BYD’s expansion plans are impressive, but they need to handle current issues better. Fairness builds customer loyalty.

  9. Chris Lee July 5, 2024

    What does this mean for the electric vehicle market in Thailand? Will it shake consumer confidence?

    • FutureTech July 6, 2024

      It could. People might think twice before buying EVs if they keep hearing about issues like this.

    • Sarah K. July 6, 2024

      Bad press definitely impacts the market. Other brands might take this opportunity to lure customers.

  10. GreenEnergyGuy July 6, 2024

    Despite the controversy, electric vehicle production expansion is crucial for sustainable development.

  11. Lucy M. July 6, 2024

    The authorities should step in more decisively. Just starting an investigation isn’t enough. Protect consumers!

  12. Roger P. July 6, 2024

    Hopefully, the Office of the Consumer Protection Board will impose serious penalties if dealerships are found guilty.

  13. ElectricTom July 6, 2024

    BYD refuses to take responsibility. This is not how a global leader should behave.

    • AutoExpert July 6, 2024

      They might be trying to manage PR but failing. Transparency is key in moments like these.

  14. Economics_Guru July 6, 2024

    It all boils down to trust. Losing consumer trust can be more damaging than short-term losses.

  15. Sophie July 6, 2024

    Will the promised measures from BYD actually come to fruition, or is it just more empty promises?

  16. TonyG July 6, 2024

    Before you all bash BYD, remember that this could happen with any brand. Stay vigilant regardless of the manufacturer.

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