Recently, BYD has continuously reduced the price of the Atto 3 electric car model in the Thai market - a move that sparked anger in the user community of the land of the golden temple. The reason is said to be that the company has reduced the product value without a legitimate reason, contrary to its commitment to customers who have to spend large amounts of money to early own this model.
On a Facebook group for customers of the Chinese electric vehicle company, user Kato Kung shared his anger: "Atto3 had its first discount of 100,000 baht at the end of 2023. At that time, I paid in installments for 2 months but didn't think anything either. Then comes the second price reduction, another 100,000 baht in March 2024."
Initially, the above customer planned to sell the car after paying in installments for one year. However, the situation was "irreversible" when in July 2024, prices dropped again by a total of 340,000 baht. “I think I can't stand it anymore, I don't want to use it anymore because I don't like companies that act like that,” Kato Kung wrote.
Kato's anger is also the general dissatisfaction and disappointment of many customers who bought BYD cars in Thailand before the company's confusing move.
Consolidate inventory to "easy" markets?
According to Associate Professor Wasana Wongsurawat, an expert on Chinese history at Chulalongkorn University (Thailand), there are 3 reasons for the "reckless" price reduction as many BYD customers concluded.
First, output has far exceeded demand. This is because the Chinese government has strongly subsidized electric vehicle manufacturers , including BYD.
Second, prejudice about origin prevents BYD from selling in Europe as expected. Meanwhile, the US has decided to impose high taxes on its electric vehicles.
The above two reasons lead to the third reason. "That has led to a situation where we are forced to sell products in easy-going markets with lower standards and reduce prices to clear warehouses," Ms. Wasana said.
In a 2023 study on BYD's strategy in foreign markets, a team of research authors from American and Chinese universities pointed out that one of the reasons why BYD car prices are low is that the company Reduced spending on after-sales service training. As a result, BYD employees are generally less professional than employees of other automakers.
In addition, "BYD's lower new energy vehicle prices also raise many safety concerns during the company's international expansion," the study stated.
The wave may stop buying BYD because they know the price will fall further
A clear trend responding to BYD's move is that the company's customer community in Thailand "whispers" to each other not to rush to buy BYD electric cars for fear of the car losing value too quickly.
"In the future, when BYD launches new cars for sale, we will not rush to buy them because BYD's past price reductions cause a constant feeling of concern," user Chakrit Butraj expressed skepticism about the future price of electric cars. BYD.
Below the article, many customers said they felt disadvantaged, even "betrayed" by the brand they once trusted.
The negative impact from this incident also spread to the insurance industry. On Amarin TV, insurance expert Siravich Siravich warned about the possibility of "moral hazard" after BYD's price reduction.
This phrase refers to a situation where a customer has a vehicle insured for an amount higher than the current market value. These people may intentionally sabotage a vehicle to receive payment that exceeds the original vehicle value.
For example, if a BYD Atto 3 was purchased and insured last year for 900,000 baht but is now only priced at 859,900 baht after rebates, the owner may consider intentionally sabotaging the car to the point that it cannot be repaired. treatment to receive full insurance money.
"This example shows that there exists an incentive for car owners to ask for their money back," Mr. Siravich said. “This is very scary for insurance companies.”
According to experts, although BYD's strategy may bring short-term benefits to the company in clearing inventory and boosting sales in low-standard markets, this move may have long-term consequences. long for brand image, when user rights must be guaranteed fairly everywhere.
BYD launched many car models to Vietnam even though the largest dealer system withdrew
In Vietnam, BYD has just introduced many car models to the market even though the largest dealer system announced its withdrawal right before this car company officially launched. New Energy Holdings, a subsidiary of Tasco Auto (which owns Savico), suddenly decided not to participate in the BYD dealership development project in Vietnam. This decision was made in the context that many dealers are said to be close to completion in Ho Chi Minh City as well as Hanoi. Before making the above decision, NEH was one of the largest BYD vehicle distributors in Vietnam with a system of showrooms spread throughout Vietnam.
