Customers Furious Over Drastic Price Cut
BYD’s recent significant price reduction for its electric vehicles in Thailand to boost sales and compete for market share has left some of its customers upset and disillusioned.
According to Reuters on July 5th, Thai authorities have received 70 complaints from customers regarding BYD’s drastic price cut, and this number is expected to grow.
A Thai BYD customer who had purchased the ATTO 3 model at the original price took to Facebook on July 2 to express their dissatisfaction and demand compensation.
The Thai customer’s open letter to BYD Thailand. Source: MGR Online.
In the letter, the customer narrates how they were persuaded by a salesperson to buy the ATTO 3 on January 30, 2023, for THB 1,199,900 (approximately USD 32,800) due to the impending price increase following the government’s discontinuation of THB 100,000 subsidies for electric vehicles.
However, on July 1, 2024, BYD announced a significant price reduction of THB 340,000 (approximately USD 9,300) for all ATTO 3 models. According to the customer, this price cut has profoundly impacted them in several ways.
Firstly, it affects their social status. Like many others, this customer purchased the vehicle not only for its features but also as a symbol of their social standing and financial capability.
“Automobiles are divided into various price segments, partly to signify social status, so customers are willing to spend more,” the letter reads. “But on a fine day, the car I paid over a million baht for suddenly becomes an ordinary car that anyone can afford. To be honest, I don’t think I’ll continue using this car.”
The next factor influenced is the resale value of the ATTO 3. The author of the letter argues that with such a deep price cut from BYD, they will face difficulties when trying to sell the car to purchase a newer model in a higher price segment.
“When a brand-new car that initially cost THB 859,900 is resold, its value drops by 20%, leaving THB 687,920. For a car that’s over a year old, the price drops by about 40%, leaving THB 515,940. This means that within a year, I will lose exactly THB 683,960, which is about 57%,” the author writes.
After-sales Service Quality Deteriorating?
Based on their personal experience, the Thai customer predicts that the increased sales resulting from the price cut will overload BYD’s service centers, leading to longer waiting times and potentially compromising service quality. This further adds to the customers’ disappointment and diminishes their ownership experience.
“The initial service was very fast, but after about a year, I had to wait 2-3 days to get an appointment at the warranty center,” the open letter states. The customer also questions whether they will have to wait for an entire year to get their car repaired, given the unchanged number of warranty centers.
Finally, the letter writer expresses concern about finding an insurance company willing to provide comprehensive coverage for a vehicle that has undergone such a substantial price reduction. This uncertainty creates additional stress and inconvenience in the customer’s ownership experience.
“Therefore, for the reasons mentioned above, I would like to ask the BYD executives to consider the difficulties of the customers,” the author writes. “If you had announced that after a year, the price would drop by THB 340,000, do you think anyone would have bought the car?”
Hence, the customer urges BYD to compensate the price difference to its existing customers to ensure fairness.
While BYD’s pricing strategy may boost short-term sales, it risks alienating customers who feel “exploited” and “betrayed,” potentially driving them away from the brand.
Source: Reuters, MGR Online
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