Chinese electric vehicle BYD acquired Rever Automotive, responding to the price reduction issue!

On July 6, the Chinese electric car manufacturer BYD acquired 20% of the shares from its local dealer in Thailand, Rever Automotive. Thailand is BYD's largest electric car market outside China. BYD is the leader in the electric vehicle market in China, favored by consumers for its patented blade battery technology and its cost-effectiveness in terms of price and fuel consumption. Data from the research company Counterpoint shows that in the first quarter of 2024, BYD occupied 46% of the Thai electric car market and has now become the third-largest passenger vehicle manufacturer in Thailand.

BYD has set up its first factory in Southeast Asia in Rayong, Thailand this week, with an investment of $490 million, an annual production capacity of 150,000 vehicles, and employing 10,000 staff members. This marks BYD's acceleration of its global expansion and the aim to turn Thailand into a production hub for electric vehicles in Southeast Asia.

Rever Automotive has more than 100 showrooms in Thailand and began selling BYD cars in 2022. Then BYD quickly became the best-selling electric car brand in the country. This acquisition will enable BYD to better control its sales channels in Thailand and provide consumers with higher quality services. Liu Xueliang, General Manager of BYD Asia Pacific Auto Sales, said, "We are thrilled to deepen our partnership, accelerate the popularity of electric vehicles, and contribute to Thailand's transition to a more sustainable future."

However, BYD's expansion in Thailand is not always successful. Recently, Rever Automotive has triggered numerous consumer complaints due to its sales behavior and has been investigated by the Thai Consumer Protection Committee. It is reported that some consumers were rush into buying a car under the dealer's persuasion, but later found that the price had dropped significantly and felt deceived. Despite the many complaints from dissatisfied electric car buyers and the investigation by the Consumer Protection Committee, BYD still insists on this acquisition.

The Prime Minister of Thailand even joined the debate this week to urge BYD to ensure consumer rights and formulate a reasonable pricing policy. The Consumer Protection Committee said that they have received as many as 70 complaints, with complainants claiming that dealers urged them to act quickly to purchase cars before the end of the discount promotion. However, the subsequent price drop made many buyers lose out.

The CEO of BYD assured the Prime Minister at the factory opening ceremony in Thailand that the future pricing would be reasonable and that the company would do everything possible to assist affected customers.