Chinese electric automaker Zeekr remains committed to penetrating Thailand’s luxury car market despite “sales dip,” Bangkok Post reports.
Zeekr to launch X in Thai market
Geely-owned Zeekr Intelligent Technology voices out apprehension about the declining sales of luxury cars in the Thai market in H1 2024.
According to the Chinese brand, local premium car sales dropped by a whopping 30% year-on-year during the first six months of the year amid the economic slowdown and intensifying competition brought on by the surge of China-made EVs in Asia.
For context, Chinese players started infiltrating the Asian market due to the intensifying trade tensions among major economies, including the US, China, and Europe.
One of these Chinese companies is Zeekr, which seeks to launch its X compact SUV in the country’s luxury car market.
EV sales wane in Thailand
Thailand’s luxury car sales, including electric and internal combustion engine-powered (ICE) cars, reached only 17,000 units in H1 2024 despite Thai customers’ perceived high level of purchasing power.
Zeekr’s Southeast Asia Head, Bao Zhuangfei, blamed the sales decline on the country’s sluggish economy. It apparently prompts local customers to be more prudent about spending. The banks’ more stringent criteria in granting automotive loans also contribute substantially to these sales declines.
In comparison, luxury car sales reached 50,000 units last year as Thailand was not heavily affected by the economic downturn and weak customer purchasing power.
“The Thai economy is not healthy, compared with those of Malaysia, the Philippines and Indonesia. This is a tough time for businesses, including car manufacturers and sellers.”
Bao Zhuangfei, Zeekr’s Southeast Asia Head
Price war
Apart from insurance firms’ reluctance to provide electric vehicle insurance due to falling market prices of new and used EVs, the intensifying price war also makes it more challenging for new entrants like Zeekr in the Thai market.
Multiple players’ aggressive price cut strategy resulted in a major price war, prompting customers to delay their planned purchases.
Despite this, Bao Zhuangfei asserted that Zeekr refuses to join the price war because it could hurt the reputation of China-made EVs.
Zeekr Vice President Chen Yu said the Chinese company remains committed to selling its electric vehicle offerings in the Thai market due to its rapid growth following the government’s imposition of an EV promotion policy.
Zeekr reportedly considers establishing a local factory in the country if the company gets a warm welcome from both the government and customers. Zeekr set a target of selling 2,000 EVs in the Thai market in 2024.
