BYD’s price cuts spark backlash in Thailand

The Thai government may be celebrating the opening of a new BYD plant in July, but owners of BYD cars are unhappy with the continuous discounts on the Atto 3 SUV.

BYD recently offered discounts of up to 340,000 baht ($9,460) to stay competitive in the market. These price cuts have lowered the resale value for current owners, causing frustration.

“I was told the price would go up in two months, after the government subsidy expired. Usually, insurance covers 80 per cent of the new car value, and it depreciates 10 per cent per year, but the discount pushes it even lower,” said Darakorn, who bought an Atto in January 2023, just a month after BYD launched in Thailand.

He bought the SUV for 1.19 million baht with a bank loan and a 100,000-baht government subsidy. The latest Atto models released this year are now priced below 1 million baht.

Darakorn questioned whether anyone would have purchased the cars if the price had dropped by 340,000 baht within a year of his purchase.

The situation has prompted a growing chorus of complaints, with owners exploring legal options. The Consumer Protection Board is now investigating the matter, amid concerns about broader market implications.

Thailand’s automotive industry is facing a perfect storm of challenges. Weak economic growth, high consumer debt, and an influx of Chinese EVs have created a highly competitive landscape.

Attribution: The Nikkei Asia