The Production Of Electric Vehicles Is Surging, Which May Lead To A Significant Drop In Prices

The Production Of Electric Vehicles Is Surging, Which May Lead To A Significant Drop In Prices

Tuesday, 04 Feb 2025

The increasing interest of the public in pure electric or battery-based vehicles has prompted manufacturers to significantly ramp up production volumes. However, this surge in production has serious implications for retail prices, leading to intensified price competition.

According to a report by Reuters, Thailand is now preparing for a "price war" due to an oversupply of electric vehicles. Recently, many manufacturers have reduced their selling prices to attract consumers. In a report released on Friday, January 31, 2025, it was noted that GAC has lowered the price of the AION Y Plus by up to 166,000 baht (approximately 80 million IDR). Furthermore, Great Wall Motor (GWM) has cut the price of the Ora Good Cat by as much as 270,000 baht (around 130 million IDR).

The substantial discounts offered by Chinese manufacturers have led to instability in vehicle pricing. This situation has resulted in complaints from buyers, with numerous consumers reporting these practices to the Consumer Protection Board in Thailand.

BYD has previously been investigated by the Thai government for offering discounts of up to 340,000 baht (approximately 164 million IDR). However, the investigation has concluded, and BYD was cleared of any wrongdoing.

Senior analyst at Siam Commercial Bank (SCB), Tita Phekanonth, indicated that the price competition between electric vehicles and conventional cars is likely to persist for an extended period, potentially forcing prices of internal combustion engine vehicles to decrease as well.

"This price war could be very prolonged, aggressive, and increasingly widespread," Tita stated to Reuters. To mitigate the negative effects of this price war, which could disrupt the automotive industry, Thailand's Board of Investment (BOI) is taking strategic measures, including promoting the export of Thai-made electric vehicles to alleviate the oversupply in the domestic market.