As EV Market Surges, Complaints and Competition Leave Automaker Scrambling to Recharge Its Strategy
Nissan Thailand is facing growing criticism as owners of its all-electric Nissan Leaf have begun filing complaints about unexpected issues with the vehicle. This backlash comes at a time when the company is already struggling to keep pace with the rapidly evolving electric vehicle (EV) market in Thailand.
The Nissan Leaf, once hailed as a pioneer in the EV space, is now at the center of controversy due to reported problems with unexpected acceleration and potential power loss. These issues mirror similar complaints that have been raised in other markets, prompting concerns about the vehicle's safety and reliability.
One Leaf owner reported to the National Highway Traffic Safety Administration (NHTSA) in the United States that their "vehicle doesn't slow down when taking foot off the acceleration pedal," adding that "it will continue to move at slow speed on level ground". While these complaints have not yet resulted in an official recall in Thailand, they have undoubtedly damaged consumer confidence in the model.
The timing of these complaints couldn't be worse for Nissan Thailand. The company has recently admitted to underestimating the speed at which Thai consumers would embrace EVs. Isao Sekiguchi, president of Nissan ASEAN, acknowledged this misstep, stating, "The speed of the acceptance rate of EVs among Thai customers, even those living upcountry, was not what we anticipated".
Nissan's slow response to the changing market dynamics has allowed Chinese EV manufacturers to gain a significant foothold in Thailand. The China-ASEAN Free Trade Agreement, which allows for zero import duty on electric cars from China, has further complicated Nissan's position in the market.
Adding to Nissan's woes is the fact that the Leaf, introduced to the Thai market in March 2017, is now seen as outdated compared to newer EV models flooding the market. Sekiguchi admitted that "the fast speed of Chinese OEMs, breaking all the fresh models from China, was overwhelming".
As Nissan Thailand grapples with these challenges, the company is reportedly "redefining our strategy, putting all the possibilities on the table". However, rebuilding consumer trust in the wake of these complaints will be crucial for any future success in Thailand's competitive EV market.
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