BYD, a global leader in automotive technology, and RÊVER AUTOMOTIVE, Thailand’s leading distributor and service provider of BYD electric vehicles, have announced a significant partnership. BYD will acquire a 20% stake in RÊVER AUTOMOTIVE. This strategic investment strengthens Thailand’s electric vehicle (EV) market and signals broader economic growth. Meanwhile, recent price reductions will be reviewed for compensation within this month to ensure fairness.
- – BYD’s Journey to the Top of the Global NEV Market
- – BYD opens manufacturing plant with 150,000-unit capacity in Thailand
This collaboration combines the strengths of both companies. BYD has world-class expertise in battery and electric vehicle technology, while RÊVER AUTOMOTIVE has a deep understanding of the Thai market and a robust distribution network. This synergy will enable BYD to expand its market in Thailand quickly and efficiently. At the same time,RÊVER AUTOMOTIVE will benefit from BYD’s cutting-edge technology and innovation.
Mr. Liu Xueliang, General Manager of BYD AUTO Asia Pacific Sales Division, said, “This joint investment strengthens the strong relationship between BYD and RÊVER AUTOMOTIVE to drive the use of electric vehicles in Thailand and promote the transition to a low-carbon society.”
BYD is committed to promoting the growth of new energy vehicles in Thailand. To show gratitude to Thai consumers for their acceptance of our products and meet consumer expectations, we decided to build our first overseas new energy vehicle production base in Thailand in the spring of 2022, taking only 16 months to construct this overseas production base, which is considered very fast.
This factory has a production capacity of 150,000 vehicles per year, and what’s even more special is that BYD will not only assemble cars here but also bring BYD’s main components to be produced in Thailand. In July, the Dolphin model will start rolling off the production line at this Rayong factory.
In the future, this factory will have nearly 10,000 employees, and we will cooperate with various educational institutions in Thailand to train high-level technical personnel for this industry. BYD will use the factory in Thailand to promote the rapid development of new energy vehicles and Thailand’s green economy.
Regarding BYD’s sales in Thailand, we currently have 3 models sold in Thailand: ATTO 3, Dolphin, and Seal, with a total of 50,000 units sold in Thailand up to last month. This success would not have been possible without the efforts of our dealers across the country. Currently, BYD has dealers throughout Thailand and expects to expand to 77 provinces by the end of this year.
Mr. Li Qian, Secretary of the BYD Board and General Manager of BYD Investment Division, added, “BYD is confident in the potential of the Thai electric vehicle market and is ready to bring the best technology and products to meet the needs of Thai consumers.”
This collaboration will not only benefit the expansion of the EV market but also focus on enhancing the customer experience. Both companies will work together to develop after-sales services and introduce new technologies to build consumer confidence in choosing electric vehicles.
Ms. Pratarnporn Phornprapha, Executive Vice President of RÊVER Business Group, said, “The strengths of both companies will enable us to provide a seamless and superior experience that covers all dimensions for customers, from distribution to after-sales service, to build long-term customer trust while driving positive change in the electric vehicle industry.”
This joint investment aligns with the Thai government’s policy to drive the country towards becoming a “NEV Nation” or a country that primarily uses new energy vehicles. This will help reduce dependence on fossil fuels, promote the use of clean energy, and reduce greenhouse gas emissions.
Mr. Prachant Wong Phornprapha, Chief Executive Officer of RÊVER Business Group, said, “This collaboration not only reaffirms our commitment to driving Thailand towards becoming a NEV Nation but also believes it will promote the nation’s economic growth and achieve the goal of net-zero greenhouse gas emissions by 2065.”
“Concerns about the price reduction are currently being considered for compensation measures due to the diverse purchasing periods of buyers. The compensation measures will be considered to ensure fairness for all parties. It is expected that a conclusion will be reached within this month.”
Mr. Prachant Wong also added about RÊVER AUTOMOTIVE’s commitment to making electric vehicles an accessible option for all consumer groups. “We are committed to offering cars at prices accessible to all customer groups, leading to frequent price changes for suitability.”
The One Price Policy has both advantages and disadvantages. The advantage is that it gives customers the utmost respect because, at that time, no one has the right to buy cheaper or more expensive than anyone else. At the same time, if asked why others are reducing prices but we are not affected, it must be said that with the One Price Policy, our price reduction must be a public reduction. The term “public reduction” means we have to announce how much we are reducing, what promotions we have, and all deals such as RÊVER Care, which will be different from other brands. When they reduce prices, they use the method of giving discounts to dealers, and then dealers let salespeople negotiate prices with customers. Customers have to go to many places, but what’s different from us is that they don’t announce the price reduction publicly.
We see that this has resulted in drama as we all know. If asked how we feel because there are both positive and negative voices, we think that we actually care about both, both positive and negative voices. We are even happy that we know how our customers feel, leading us to agree that we will have compensation, but it must be appropriate compensation. We confirm that we need time within this month to consider this before announcing it.
Regarding pricing, I think our prices are already reasonable because, as previously stated, our information is not static all the time. When cars are produced for a long time, all costs will fluctuate, and we have become more capable of making our products reach more people. We believe that we have set prices that are appropriate for the market at that time, but I think what we need to change is the frequency of announcements. I think this might be a different matter from the price.
We are still trying to make our prices competitive so that our products can reach as many customers as possible, but the frequency of announcing price reductions is something we need to consider more appropriately.
“I believe that every manufacturer is trying to price like we do, but there will be a line that some brands cannot cross,which depends on the company’s ability to set that line as low as possible. This makes it difficult to say whether price competition has reached its lowest point today.”
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