Asia Tech Wire (July 8) -- China's largest electric car maker BYD (1211.HK) will buy a 20% stake in Rever Automotive, its local distributor, after setting up a factory in Thailand.

The deal is part of an agreement that the two companies signed on Saturday to deepen their cooperation.

The purchase comes at a time when Rever is facing a government investigation. Earlier, the company made some of its regular customers to feel like they were paying too much for their cars due to steep discounts.

And meanwhile, news has emerged that Thai Prime Minister Srettha Thavisin, in a meeting with BYD Chairman Wang Chuanfu, asked him to better manage customer expectations on pricing and ensure local buyers are protected.

Rever has been BYD's dealer in Thailand since it entered the market in late 2022, and is the Chinese electric carmaker's exclusive dealer in the country for now.

Working with Rever, BYD has opened more than 100 showrooms in Thailand.

Earlier this year Rever CEO Pratarnwong Phornprapha said the company would add 200 dealerships by the end of 2025.

BYD officially inaugurated its electric car manufacturing plant in Thailand's Rayong province last week, its first in Southeast Asia, with an expected annual production capacity of 150,000 units.

The 35 billion baht plant will produce key components such as batteries and transmissions, in addition to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).