Among the key news on Hong Kong stocks, BYD Co. Limited (HK:1211) is reportedly facing criticism in Thailand over huge discounts on its EV models. As reported by Reuters, Thailand’s consumer protection agency is investigating the company regarding the overpricing of its cars. Since the launch of the investigation, Thailand’s consumer protection agency has received around 70 complaints from customers who bought BYD vehicles prior to the discounts and now feel they overpaid.
The reports came one day after BYD celebrated its first EV factory launch in Thailand, which aims to capture the growing EV demand in the Southeast Asia region. The company currently operates passenger car manufacturing facilities in Thailand, Brazil, Hungary, and Uzbekistan.
BYD’s Troubles in Thailand
Thai authorities launched a probe and are investigating BYD’s dealers after receiving consumers’ complaints about aggressive discounting. Rever Automotive is the only distributor of BYD cars in Thailand and operates more than 100 dealerships.
According to a government statement, a sales representative allegedly claimed the car’s price would increase after a discounting campaign ended. However, the dealership subsequently reduced the price even more aggressively. Some BYD owners in Thailand took to social media to express their frustration, feeling cheated by the extra discounts.
The government agency also stated that BYD’s CEO, Wang Chuanfu, has assured that future pricing will be fair and that customers affected will receive full assistance from the company.
Southeast Asia remains a key market for BYD and other Chinese manufacturers. The Thai government’s goal to convert 30% of its annual vehicle production to EVs by 2030 highlights the huge opportunity for Chinese EV players in this region.
Is BYD a Good Stock to Buy Now?
Year-to-date, BYD shares have gained 12.23%.
According to TipRanks, 1211 stock has received a Strong Buy rating, backed by all Buy recommendations from eight analysts. The BYD Co. share price target is HK$298.48, which implies an upside of 27.2% from the current trading level.
