LG Thailand Anticipates More Price Competition Amid Chinese Expansion

LG

THAILAND: LG Electronics (Thailand) Co Ltd expects heightened price competition in Thailand’s household appliance market as Chinese manufacturers expand their presence in the country.

In September, Haier inaugurated a 10-billion-baht (US$ 310 million) air conditioner plant in Chon Buri, with an initial annual capacity of 3 million units and plans to double production to 6 million units by 2027. Hisense also announced a 4.7-billion-baht (US$ 140 million) investment to develop a manufacturing park in Chon Buri, expected to begin operations in 2026, producing refrigerators and washing machines.

“The industry could see more aggressive price competition,” said Amnaj Singhachan, head of marketing at LG Electronics (Thailand). He cautioned that such intense price competition may not benefit the market in the long term and noted that distributors would prefer to avoid this direction. Amnaj emphasised that LG will not engage in price wars, focusing instead on communicating product and service quality.

Varapong Oupakaew, LG’s plant director, stated that the company’s Rayong facility, established in 1997, has an annual capacity of 5.5 million units, with over 80% exported to global markets including the Americas, the Middle East, Canada, Mexico, and Australia.

He added that LG’s US network will guide adjustments related to trade regulations, while the Thailand unit will increase local sourcing from 70% to 80–90%. This initiative aims to attract supplier investments, create local jobs, and enhance parts management efficiency by reducing excess inventory.

Source: Bangkok Post