Tesla Rival BYD's Thai Distributor Faces Ongoing Investigation Over EV Discounts

Thailand’s investigation into discounts from Chinese EV maker BYD Company BYDYY will continue despite a cash-back program initiated by its distributor, Rever Automotive, after backlash from consumers complaining that they overpaid for their electric vehicles (EVs).

Thailand, a major auto assembly and export hub, is BYD’s largest overseas market and the leading EV brand in the country. Last month, BYD inaugurated its first factory in Southeast Asia in Thailand.

BYD's $486 million facility in Thailand's Rayong province will focus on exporting most of its 150,000 annual capacity to other Southeast Asian countries and Europe.

Rever Automotive announced a cash-back program and discounts at charging stations valid until March 2025. Existing BYD customers can receive up to 50,000 baht ($1,382) cash back on their next purchase of the ATTO 3 or BYD Seals models from July 18 to the end of August, reported Reuters.

However, Thailand’s Consumer Protection Board will proceed with its investigation, as complaints continue to rise.

Rever, which operates over 100 dealerships across Thailand, clarified in a statement that the cash-back campaign is a promotion for old customers, not a compensation program. BYD holds a 20% stake in Rever Automotive.

Also Read: Tesla’s Rival BYD Reports 88% Increase In Japan Sales In H1: Report

The issue gained government attention this month after Rever drastically reduced prices on some BYD models by up to 340,000 baht ($9,400), leading to complaints from previous buyers.

Prime Minister Srettha Thavisin requested BYD CEO Wang Chuanfu to protect Thai consumers, and Wang assured appropriate future pricing.

BYD, a Shenzhen-listed company, is part of a wave of Chinese automakers investing over $1.44 billion to establish new EV factories in Thailand, supported by government subsidies and tax incentives.

Other pledged investments include Changan Auto with $285 million. The Thai government aims to convert 30% of its 2.5 million vehicle production capacity to EVs by 2030.

BYD had earlier reported a jump in passenger vehicle sales for June 2024, with a total of 340,211 vehicle deliveries. 

BYDDY Price Action: BYD shares are higher 1.34% at $62 on Friday at publication.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: BYD Seal EV | Photo courtesy: BYD