Prime Minister Srettha Thavisin called on BYD (Build Your Dreams), China's electric vehicle (EV) giant, to ensure protection and a proper pricing policy for consumers after some of its dealers offered steep discounts, leaving customers who had bought the vehicles before the discount campaign feeling "short-changed".
Mr Srettha told BYD Chief Executive Wang Chuanfu, who paid a courtesy call on the premier on Friday, to better manage customer expectations about pricing and ensure local buyers were protected.
Mr Wang was in Thailand to mark the opening of the company's first Southeast Asian factory in Rayong on Thursday.
The prime minister also asked the company to make the most use of supply chains in Thailand and ensure the maximum output as agreed upon with the government.
Mr Wang gave assurances that future pricing would be appropriate and the company would find ways to help affected customers.
He said the firm has attached importance to the Thai market. BYD has manufactured several car parts at its factory in Thailand as well as used new technologies for the production, he said.
Mr Wang said the factory has a production capacity of about 150,000 EVs annually, and it will take about two years to achieve its full capacity. He added the company is ready to expand its investment in Thailand and hire more workers.
BYD officials in Thailand and its sole distributor, Rever Automotive, which has a network of over 100 dealerships, did not immediately respond to Reuters' emails seeking comment.
The government initiated its investigation into BYD's dealers after a complaint alleged a sales representative had asserted the customer's car price would rise after a discounting campaign ended but instead, the dealership cut prices further.
The Office of the Consumer Protection Board (OCPB) has launched a probe after receiving complaints regarding aggressive discounting by BYD dealers that has left some buyers feeling they overpaid for their Chinese EVs.
On social media, some BYD owners in Thailand vented anger that the deep discounting by the world's largest EV manufacturer had left them feeling short-changed.
"Nothing hurts more than this," said one owner on Facebook, explaining that a BYD Atto 3 car she had bought for 1.19 million baht was now selling for 859,000 baht.
Another aggrieved owner posted a video of himself scribbling disparaging remarks about BYD with a thick blue marker on the bonnet of his EV, including: "I am never buying this car brand again."
Rever's website on Friday showed some models are currently being discounted by as much as 340,000 baht.
Passakorn Thapmongkol, a senior official at the OCPB, told Reuters that the agency had met with Rever officials and asked for documents related to the discounting scheme. "More customers are gradually coming in to file complaints," Mr Passakorn added.
Thasornatt Thanittipun, secretary-general of the OCPB, said that the OCPB will invite the dealer and affected consumers to give information and settle their dispute.
"Initially, a private company has the right to initiate a discounting scheme. But since we have received complaints from consumers, we will have to look into the issue and hear from both sides," he said.
Wissanu Wongsinsirikul, secretary-general of the Trade Competition Commission, said that if products are sold below production costs without good business reasons, this could violate the Trade Competition Act.
But it should not be illegal if such steep discounts are offered based on business grounds, such as when dealers offer discounts on outgoing models to make room for new ones, he said.
Thailand is BYD's largest market outside China and key to its plans to expand globally -- particularly in the wake of 17.4% tariffs imposed on the automaker by the EU.
The automaker commanded a 46% share of Thailand's EV segment in the first quarter and is the third-largest player in passenger cars, according to research firm Counterpoint.