Update: Chinese Carmakers Cut Prices in Thai Market as Sales Slump
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Chinese carmakers have launched a wave of price cuts in the Thai market, duking it out over sales as the country’s lenders tighten auto loan approvals in the face of soaring household debt.
The cuts underscore the increasing importance of overseas markets to Chinese automakers, as the protracted price war at home takes a toll on their profitability.
Great Wall Motor Co. Ltd. (601633.SH) earlier this month launched a limited-time discount for Thai customers to buy its electric SUV series “Tank 300,” with one model on offer at an 18% discount. The Shanghai-listed automaker rolled out the SUVs in Thailand in late September.
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- Chinese carmakers, including Great Wall Motor and BYD, are reducing prices in Thailand to boost sales amid cautious lending due to high household debt, which reached a record high average of 606,378 baht in September 2023.
- Car sales in Thailand dropped 23.9% in the first eight months of 2023, and Great Wall Motor's sales fell over 40%, while tough lending conditions affected consumer purchasing power.
- Chinese automakers face challenges competing with Japanese rivals and balancing production and profitability, with a potential price war extending two to three years, possibly leading to future partnerships.
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