The Thai government may need to revise the electrical vehicle policy once many problems occurred both in domestic and abroad that affected to the current policy.
Three days ago, the European Union has raised tariffs on Chinese electric vehicles , as Brussels takes action to protect the bloc’s motor industry.
The new tariffs on individuals manufactures range from 17.4% to 37.6% which in on top of a 10% duty that was already in place for all electric cars imported from China. This could raise the price of EVs across the EU, making them less affordable for European consumers.
Price wars has been launched
In Beijing, in early this March, Chinese electric vehicle BYD (Build Your Dream) added fuel to the flames of a price war in China by cutting the price of its cheapest car, the Seagull, by 5%.
In Thailand, Tokyo Marine announced on Tuesday (July 2) that its current insurance premiums would “temporarily” not apply to new EV customers or those transferring their policies, as it would consider new premium rates on case-by-case basis.
The Consumer Protection Board is a schedule next week to investigate BYD dealers after a consumer complaint about aggressive discounting by the Chinese electric vehicle maker.
BYD informed that the discounting was a promotion campaign because the company opened an electric vehicles (EVs) plant in Thailand on Thursday (4), the auto maker’s first factory in Southeast Asia.
The company later announced to compensate to affected customers.
EV Board is a schedule to meet next week
Thailand’s National Electric Vehicle Policy Committee (EV Board) chaired by Prime Minister Srettha Thavisin was schedule to meet on Wednesday (July 3). Later, the Board of Investment informed to the press that the meeting was postponed to next week (July 9).
The Government House source said the EV Board needs to consider many factors that may affect to EV industry.
PM called on BYD
PM called on BYD to protect and consider local consumers’ expectation on product pricing.
On July 5, 2024, Prime Minister Srettha Thavisin met with Mr. Wang Chuanfu, chairman and CEO of BYD Company. Government Spokesperson Chai Wacharonke disclosed gist of the meeting as follows:
The Prime Minister thanked BYD for having confidence and investing in Thailand which helps invigorate the Thai economy.
He called on BYD to:
1) use more of Thailand’s supply chain
2) manufacture their products at full capacity as agreed upon
3) take into account consumers’ expectation in terms of product pricing, and properly protect local consumers.
Mr. Wang Chuanfu expressed appreciation on the Prime Minister’s advices, and affirmed the company’s confidence on the potential of the Thai market.
He said BYD has been using more of Thailand’s supply chain than required. Several automobile parts are also produced domestically using new technologies.
Current production capacity of the BYD factory in Thailand is 150,000 vehicles per year. It will take 2 years to manufacture at full capacity. In addition to domestic sales,
the company has a policy to export BYD cars to other ASEAN countries, i.e., Indonesia and Vietnam.
The company would also seek proper remedies to affected customers
With regard to car prices, BYD chairman and CEO affirmed the company’s policy on appropriate future pricing to ensure the least impact on market adjustment. The company would also seek proper remedies to affected customers.
BYD chairman and CEO emphasized the company’s confidence on Thailand’s potential as a growing automobile market,
and has planned for investment expansion which means more jobs will be available. BYD employees will be train on new knowhows and technologies. He also extended his invitation for the PM to visit BYD factory at an appropriate occasion.
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