Chinese EV makers slash prices in Thailand to boost sales

Chinese EV makers are offering steep discounts in Thailand, with BYD cutting prices for its Seal sedan by up to 38%, and SAIC Motor reducing the MG4 hatchback by 27%.

The discounts have driven over 20% higher EV sales in October and November, shifting buyers away from Japanese brands.

Chinese firms including BYD, SAIC, and Chery have expanded production in Thailand as Japanese automakers lag in EV offerings and do not benefit from these subsidies.

Manufacturers are using price cuts to clear inventory and meet Thai production targets, but industry observers warn this could lead to oversupply and further price drops.

Thailand extended its EV production deadline for manufacturers by six months to June 2026, and lengthened the window for buyers to register for subsidies to the end of January.

Thailand offers subsidies up to 150,000 baht (US$4,700) per EV for automakers that meet local manufacturing quotas.

The government’s policies require rising production quotas and gradually decreasing subsidies, which could keep prices low.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Thailand’s EV production capacity exceeds demand, risking a prolonged price war

Chinese automakers have built large plants in Thailand 1 2. BYD’s Rayong site can make 150,000 cars a year, Chongqing Changan Automobile (a Chinese automaker) plans for 100,000, and Chery targets 80,000. MG, BYD, and Great Wall Motor (GWM) were not running at full capacity in April 2025 1 2.
The glut looks like China, where weaker brands are getting squeezed 1.
Officials pushed production deadlines out by six months to June 2026 1. Many makers fell short of quotas, so demand has not kept up with the buildout 1.
EV sales jumped over 20% in October and November on steep discounts 1. Once subsidies fade and quotas tighten under current policy, momentum could slip 1.

Used EV market infrastructure matters as rapid depreciation erodes buyer confidence

Thai buyers face fast depreciation 1. Some cars lost 20% in a month, which left owners owing more than the car is worth 1.
Shoppers are pausing purchases because they fear more price cuts and negative equity 1.
Fintech firms and insurers can launch guaranteed buyback programs (commitments to repurchase a vehicle at a preset price). They can also offer residual-value insurance products (policies that guarantee a minimum future resale value) and used-EV loans that price in volatility.
Data analytics firms can build pricing intelligence platforms (tools that track and forecast model-level price movements). These tools can map depreciation by brand. They can also track model trends to guide dealers and buyers as used EV stock grows.