Key Points:
- BYD acquires a 20% stake in Thai distributor Rever Automotive. BYD opens a factory in Thailand with an annual capacity of 150,000 vehicles.
- BYD has become Thailand’s top-selling EV brand, with a 46% market share, and Rever has played a pivotal role in this.
- Rever Automotive faces a probe over pricing strategies, causing dissatisfaction among some past customers.
- BYD’s investments aim to strengthen its manufacturing and sales presence in Southeast Asia.
Chinese electric vehicle (EV) giant BYD has announced the acquisition of a 20% stake in its local distributor, Rever Automotive, in Thailand. This move underscores BYD’s commitment to expanding its footprint in its largest market outside of China, where it already holds a leading position in the EV sector.
This week, the Shenzhen-based automaker celebrated opening its first factory in Southeast Asia, which is located in Thailand. The $490 million facility is set to become a significant production hub with an annual manufacturing capacity of 150,000 vehicles and the creation of 10,000 jobs. This factory represents a crucial step in BYD’s strategy to bolster its presence in the regional market.
Rever Automotive, which began selling BYD vehicles in 2022, has played a pivotal role in the brand’s rapid ascension to the top of Thailand’s EV market. With over 100 showrooms nationwide, Rever has facilitated BYD’s substantial market penetration. “We are thrilled to deepen our partnership to accelerate the adoption of electric vehicles and contribute to Thailand’s transition towards a more sustainable future,” stated Liu Xueliang, BYD’s Asia-Pacific auto sales general manager.
Thailand has long been a major hub for auto assembly and export in the region, traditionally dominated by Japanese manufacturers such as Toyota Motor, Honda Motor Co., and Isuzu Motors. However, BYD’s aggressive expansion and competitive offerings have started to shift this dynamic. In the first quarter of 2024, according to research firm Counterpoint, BYD secured a 46% share of Thailand’s EV market and emerged as the third-largest player in the overall passenger car segment.
The acquisition of a stake in Rever Automotive coincides with a government investigation into the distributor’s pricing strategies. Rever has come under scrutiny for offering steep discounts on BYD vehicles, leading to discontent among previous customers who feel they overpaid for their purchases. Despite this challenge, the strengthened partnership between BYD and Rever is expected to drive further growth and solidify BYD’s market position in Thailand.
BYD’s strategic investments and operational expansions in Thailand are part of a broader effort to establish a robust manufacturing and sales presence in Southeast Asia. By leveraging local partnerships and enhancing production capabilities, BYD aims to meet the growing demand for electric vehicles and support Thailand’s transition towards sustainable transportation solutions.