Some major Chinese electric vehicle manufacturers are reportedly planning to ask Beijing to prevent a “price war” among Chinese automakers in overseas EV markets, including Thailand, aiming to maintain a good image in the industry.
Two or three companies plan to talk with Chinese authorities, hoping for help as they see that current difficult conditions might make their sales targets unachievable, said Narong Sritalayon, managing director of the Chinese carmaker Great Wall Motor (GWM).
“Strong competition in the EV market has led to a price war, which is not good for car brands,” he said. “Cheaper prices tend to be linked to perceptions of substandard products.”
A price war in the Thai EV market started last year when some Chinese firms cut prices to draw customers.
Mr Narong said GWM would not reduce its prices to compete with rivals.
Once it sets the prices for all models, they will not change regardless of what rivals do, he said.
The company prefers to develop its services to best suit customer needs, said Mr Narong.
Chongqing-based Changan Automobile did not comment on whether some Chinese EV makers were approaching the government for help, but acknowledged cutting prices is among the tactics used by car companies.
“We have not heard about a move for government intervention, but price wars are common and can occur in several industries,” said Shen Xinghua, managing director and president of Changan Auto Sales (Thailand), a subsidiary of Changan Automobile.
In China, EV makers are also cutting prices in a bid to increase sales, but this strategy is unpopular as some of them have been facing losses, he said.
This indicates car companies must focus more on other marketing strategies, including good after-sales services, said Mr Shen.
He said he believes it would be difficult for Chinese EV makers to stop a price war in overseas markets given the realities of free trade.
Changan is building an EV factory in Rayong and expects to start making domestic models of its EVs in 2025.
The plant is 25% complete, said Mr Shen.
The company is one of many Chinese EV makers that will be showcasing their products at the Bangkok International Motor Show starting on Wednesday. Changan has set a sales target of 20,000 units this year, up from 3,000 in 2023.
GWM wants to sell 25,000 vehicles locally in 2024, said Mr Narong, expecting total EV sales in Thailand to reach 130,000 units this year, up from just over 100,000 last year.