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BYD is leading the charge into Thailand as Chinese EV makers search for overseas markets. On Thursday, the Warren Buffett-backed carmaker officially opened<\/a> its first factory in the country, its first in Southeast Asia. Then on Saturday, BYD announced that it would acquire<\/a> a 20% stake in Rever Automotive, the sole distributor of BYD\u2019s vehicles in the country.<\/p>\n But it hasn\u2019t all been good news for BYD. The carmaker\u2019s recent discounts<\/a> in Thailand have left some consumers feeling short-changed, leading to a probe by the Thai consumer protection agency.\u00a0<\/p>\n Last Tuesday, days before the opening of BYD\u2019s new factory, Bangkok announced that it would probe dealers\u2019 use of aggressive discounts. According to media reports<\/a>, the investigation was prompted by a representative assuring a customer that a BYD model\u2019s price would rise following a temporary discount\u2014only for the price to fall even further.<\/p>\n Thailand\u2019s consumer protection agency said it received 70 complaints since initiating<\/a> the probe.<\/p>\n Rever\u2019s website on Monday displayed several price cuts, but the highest was for the extended range Atto 3 which had a discount of 340,000 Thai baht ($9330) from a list price of 1,199,900 Thai baht ($32,911).<\/p>\n Thailand\u2019s prime minister, Srettha Thavisin, brought up BYD\u2019s snap discounts in a meeting with BYD chairman Wang Chuanfu during a Friday meeting.\u00a0<\/p>\n Wang promised support for aggrieved customers, and that future pricing would be \u201cappropriate,\u201d according to a statement<\/a> from the prime minister\u2019s office.<\/p>\n EV makers in China often resort to aggressive price cuts<\/a> to win market share. BYD, Tesla, and their competitors are currently locked in a years-long price war that\u2019s pressured their profit margins.\u00a0<\/p>\n Thailand is Southeast Asia\u2019s hub for auto manufacturing, particularly of Japanese brands, leading to the moniker<\/a> \u201cThe Detroit of Asia.\u201d\u00a0The Southeast Asian country is BYD\u2019s largest overseas market for the first quarter of this year, according to market research firm Counterpoint Research, as the EV maker embarks on an aggressive global expansion.<\/p>\n BYD entered the Thai market in 2022 and is now the country\u2019s best-selling EV brand. Wang, speaking Thursday at the opening of the company\u2019s new Thai factory, claimed<\/a> the Chinese carmaker has over 40% of Thailand\u2019s market in \u201cnew energy vehicles,\u201d a Chinese term that includes both battery EVs and plug-in hybrids.\u00a0<\/p>\n BYD started construction<\/a> of its Thai factory in March 2023. The nearly $500 million facility will have a production capacity of 150,000 vehicles a year and is expected to employ about 10,000 people. The plant will produce cars both for the domestic and nearby Southeast Asian markets.\u00a0<\/p>\n BYD\u2019s moves into Thailand come amid a protectionist backlash in Western markets over the price of Chinese EVs. Since Friday, BYD cars imported<\/a> into Europe are subject to an additional 17.4% tariff, on top of the existing 10% duty.\u00a0<\/p>\n The Chinese EV maker is pledging to build a factory in Hungary, which means it could soon be able to sell its cars in Europe tariff-free.\u00a0<\/p>\n BYD\u2019s cars also face a steep 100% tariff in the U.S., leading the automaker to put U.S. expansion plans on the back burner<\/a>.<\/p>\n Still, BYD is continuing its aggressive plans to build a global manufacturing footprint. In addition to plants in Thailand and Hungary, the company is planning to build or is reportedly considering plants in Indonesia<\/a>, Mexico<\/a>, Brazil<\/a>, and Italy<\/a>.<\/p>\n Officials in Turkey are reportedly set to announce<\/a> a new $1 billion plant in Turkey on Monday, giving BYD another path into the European market.\u00a0<\/p>\n The reported announcement would follow a Friday decision from Turkish officials to no longer pursue a 40% tariff<\/a> on all imported Chinese cars.<\/p>\n<\/div>\n\nThailand is BYD\u2019s biggest foreign market<\/strong><\/h2>\n
EV tariffs<\/strong><\/h2>\n