Chinese EV Makers Shift 'Fire Sale' to Thailand with Discounts Up to 38%

Chinese electric vehicle makers are expanding their global presence through aggressive discounting of up to 40%, leveraging strong price competitiveness to target price-sensitive markets such as Southeast Asia. Analysts say domestic automakers including Hyundai Motor (005380.KS) and Kia (000270.KS) will inevitably face pressure as Chinese EVs rapidly gain ground in Korea as well.

Chinese EV sales in Thailand rose more than 20% in October and November, Bloomberg reported Sunday.

BYD cut prices on its Seal electric sedan by up to 38% in October, while SAIC Motor offered a 27% discount on its MG4 hatchback. Discounts have grown so steep that consumers are delaying purchases in anticipation of further cuts, according to the report. Amid oversupply, some dealers are selling vehicles at a loss to move inventory. The intensifying competition has claimed casualties, with Hozon Auto, which once ranked first in China's domestic EV sales, filing for bankruptcy.

Chinese EV makers are pursuing aggressive exports backed by vertical integration of batteries and motors, low labor costs, and government subsidies. China's automobile exports rose 52% in November, with EV exports surging 242% to 284,000 units.

In Korea, BYD, which entered the market in January, sold a cumulative 4,955 vehicles through November, ranking 10th among imported brands.