This article first appeared on GuruFocus.
Chinese electric vehicle makers are stepping up their overseas push as domestic competition intensifies, and recent developments in Thailand suggest pricing has become the primary weapon. BYD (BYDDF) has cut prices by as much as 38% on its Seal sedan and is offering compensation should further reductions follow this year, signaling a willingness to protect early buyers while keeping volumes moving. At the same time, rivals have adopted similarly aggressive tactics, with SAIC Motor discounting the MG4 by 27% and Chery’s Jaecoo J5 entering the market with promotional pricing that translated into almost 20,000 orders despite a two-month delivery wait. Dealers on the ground describe showroom traffic as unusually strong, reflecting a more than 20% jump in EV sales in October and November and a faster shift away from long-dominant Japanese brands.
Industry participants caution that the surge is being driven less by underlying demand strength and more by the need to clear inventory and meet policy-linked production targets. Repeated price cuts are starting to weigh on buyer confidence, as consumers increasingly worry that waiting could unlock even better deals. Some dealers report selling vehicles at cost or at a loss to sustain volumes, while tighter auto-loan conditions and a softer economic backdrop are adding friction. Industry advisers have warned that excess supply is not aligning well with current market conditions, raising the risk that near-term gains could give way to a pause in purchases.
The pressure point sits squarely within Thailand’s EV incentive framework, which offers subsidies of up to 150,000 baht per vehicle but requires manufacturers to meet strict local production commitments or repay the support. With roughly 30,000 vehicles needing to be produced domestically in the final two months of this year, authorities have already extended some deadlines amid concerns over oversupply, echoing patterns seen in China’s own EV market. While recent discounts could ease once quotas are met, analysts note that stricter policies, rising production obligations and intensifying competition in the coming years may keep pricing under pressure, potentially reshaping the market for longer than many investors expect.