On April 17th, news surfaced that last year China surpassed Japan to become the world's leading car exporter, with exports totaling 4.91 million vehicles.
Entering 2024, domestic electric vehicle companies began a price war that has not only intensified among local buyers but has also impacted international customers.
According to Chinese media, the intention behind the price cuts by Chinese car manufacturers was to boost local penetration rates of new energy vehicles through competitive pricing. However, some foreign car owners feel betrayed by these reductions.
A European customer expressed dissatisfaction, saying, "It's really upsetting to see the price drop just after buying the car."
Thailand, one of the largest overseas markets for Chinese electric vehicles, has seen similar sentiments. The president of Metro Group, a major Thai automotive dealer, told the press that Chinese car manufacturers face a significant issue in the local market due to rapid price reductions.
Many Chinese car companies, in pursuit of higher sales, have aggressively cut prices, damaging their brand reputation and causing losses for buyers, which is viewed as unfair.
Banks and financial institutions are also feeling the pinch as vehicle depreciation affects their investment values. If this trend continues, Thai financial institutions might band together to resist Chinese car manufacturers.
They question why some Chinese companies set high initial prices only to slash them later in the local market, undermining the brand's value. A different approach is seen with Toyota, which starts with lower pricing. As the market stabilizes, Toyota incrementally increases prices, benefiting early buyers with a sense of vehicle appreciation, and prompting potential buyers to make purchases before prices rise further. This long-term strategy is why Toyota holds the top market share in Thailand.
