By Panarat Thepgumpanat and Chayut Setboonsarng
BANGKOK (Reuters) – Thailand’s consumer watchdog has cleared Chinese EV maker BYD of wrongdoing over its discounting practices that sparked complaints from BYD owners and a subsequent investigation by the agency, two sources familiar with the matter said.
The government launched an investigation into BYD’s local distributor, Rever Automotive, in July after a complaint alleged that they claimed car prices would rise after a discount campaign ended, but instead cut prices even further shortly afterwards – with as much as 340,000 baht ($9,000). ).
BYD has a 20% stake in Rever.
Such practices had misled consumers and left many feeling shortchanged, buyers had said in their complaint.
The Consumer Protection Council’s investigation concluded that BYD’s discounts did not violate advertising law, said one of the sources with direct knowledge of the matter.
“The announced price reductions coincided with actual discounts,” the person said. The sources do not want to be named because the information is not yet public.
The Consumer Protection Council did not respond to a Reuters request for comment.
However, the board fined its local distributor Rever Automotive and one of its executives a total of 120,000 baht for a separate violation of failing to disclose the prices of giveaways, senior board official Thitinan Singha told Reuters.
Rever and BYD did not respond to requests for comment.
Customer reactions to their cars in Thailand, one of BYD’s biggest overseas markets, come as the auto sector there struggles with a sharp decline in consumer demand for cars due to rising household debt.
On Thursday, BYD announced another price cut of its Atto 3 and Seal models by as much as 400,000 baht ($11,700).
In China, BYD has asked its suppliers to cut prices, local media reported, in a sign that a brutal price war could escalate in the world’s largest car market.
Most Thai customers want to be compensated with the difference from the discounted price, said Passakorn Thapmongkol, an agency official.
Nuntipak Tarnvimonkarn, who bought a BYD vehicle in 2022 whose sales price dropped by more than 400,000 baht, said he and about 10 others were planning further legal action.
In an effort to appease dissatisfied owners, BYD has offered a 50,000 baht cashback program for the purchase of new vehicles and free use of the charging stations.
($1 = 34.2700 baht)
(Reporting by Chayut Setboonsarng, Editing by Devjyot Ghoshal and Daren Butler)
