Thematic Headers:
1. Shifting Preferences in Thailand’s Automobile Market
2. Factors Influencing Car Buyers’ Choices
3. Changing Attitudes towards Electric Vehicles
4. Evolving Charging Infrastructure and Range Concerns
5. Importance of Price, Performance, and Features
6. Brand Image and Recognition in the Thai Market
7. Online Payment Options and Buying Preferences
8. Maintenance and Insurance Considerations
9. Implications for the Automotive Industry
Shifting Preferences in Thailand’s Automobile Market
The findings of a recent study by Deloitte indicate a shift in car buyers’ preferences in Thailand. While internal combustion engine (ICE) cars remain the most popular choice, their market share has seen a steady decline from 36% to 32%. Meanwhile, interest in battery electric vehicles (BEVs) has decreased from 31% to 20% over the past year. On the other hand, hybrid electric vehicles (HEVs) have emerged as strong competitors, with interest rising from 10% to 19%.
Factors Influencing Car Buyers’ Choices
The study reveals that Thai consumers consider several factors when making car purchasing decisions. Price has become increasingly important, rising from 18% to 47% in terms of influencing choices. Performance has also gained significance, with 51% of respondents considering it a crucial factor. Features of cars have seen a growing importance as well, with 53% of respondents deeming them very important.
Changing Attitudes towards Electric Vehicles
The survey highlights the reasons behind the decline in BEV interest among Thai consumers. Concerns about fuel costs and the environment are prevalent, with 73% choosing BEVs to save money on fuel expenses and 71% expressing worries about environmental impact. Additionally, health considerations, along with cost savings on upkeep, were mentioned by 49% of respondents.
Evolving Charging Infrastructure and Range Concerns
Thai consumers’ concerns about charging infrastructure and range anxiety have seen a slight decrease over the past year. While 48% of respondents in 2023 expressed worries about the lack of public charge stations, this figure dropped to 46% in 2024. Similarly, concerns about hitting range decreased from 44% to 39%. The study also found that Thai consumers are becoming accustomed to longer charging times, with 38% finding a charging time of 21 to 40 minutes acceptable, up from 25% in 2023.
Importance of Price, Performance, and Features
Price, performance, and features have become crucial factors for Thai consumers when purchasing a car. The increasing importance of price reflects the economic considerations of buyers, while the emphasis on performance suggests a desire for vehicles that offer power and efficiency. Moreover, the growing significance of features demonstrates a preference for technologically advanced and customizable cars.
Brand Image and Recognition in the Thai Market
Although product quality remains the most important factor for Thai car buyers, its importance has decreased from 64% to 53%. Similarly, brand recognition and image have seen a slight decline. However, it is noteworthy that 64% of respondents expressed interest in trying new car brands. This places Thailand as the third country in the region in terms of openness to new brands, behind Vietnam and the Philippines.
Online Payment Options and Buying Preferences
Despite advancements in technology that enable virtual or augmented reality experiences for car buyers, 92% of Thai buyers still prefer to see the car in person before making a purchasing decision. Test drives and bargaining with salespeople are considered essential by 91% of respondents. However, online payment options have gained traction, with 74% of Thai consumers finding installment payments favorable.
Maintenance and Insurance Considerations
The cost of maintenance and parts is deemed highly important by 82% of Thai consumers when selecting a car model. Furthermore, 63% are willing to purchase maintenance packages that include engine oil, replacement parts, and service fees. Notably, 84% of those considering buying a BEV express interest in battery accident insurance.
Implications for the Automotive Industry
The shifting preferences of Thai consumers have implications for various sectors within the automotive industry. Charging station infrastructure, finance, and telecommunications must adapt to the changing landscape. Cost-effective options and long-term price guarantees will enable competitors to stay ahead in the market. However, this intense competition will benefit consumers, providing them with a wider range of choices, including vehicles, products, and related services.
In conclusion, the Deloitte study highlights the changing dynamics in Thailand’s automobile market. While interest in BEVs has decreased, HEVs have gained popularity. Factors such as price, performance, and features play a significant role in car buyers’ choices. Concerns about charging infrastructure and range anxiety are gradually diminishing. Additionally, brand image and recognition have seen a slight decline, with Thai consumers showing openness to trying new car brands. Online payment options are becoming more favorable, although the majority still prefer in-person experiences. Maintenance and insurance considerations are crucial for Thai consumers. The automotive industry must adapt to these changing preferences and provide cost-effective options to meet consumer demands.