Hybrid Vehicles Outpacing Battery Electric Vehicles in Thailand
A recent study conducted by Deloitte reveals that the preference for battery electric vehicles (BEVs) among car buyers in Thailand has declined over the past year. In contrast, hybrid electric vehicles (HEVs) have emerged as strong competitors, surpassing BEVs in popularity. The 2024 Global Automotive Consumer Study, which surveyed more than 27,000 customers in 26 countries, including 5,939 respondents from Southeast Asia and 1,000 from Thailand, highlighted these shifting trends.
Decline in BEV Interest and Rise of HEVs
According to the study, the number of Thai respondents who expressed a desire to purchase a BEV decreased from 31% in 2023 to 20% in 2024. On the other hand, interest in HEVs increased from 10% to 19%. While internal combustion engine (ICE) cars remain the most popular choice, their market share has steadily declined from 36% to 32%.
Reasons for Choosing BEVs and HEVs
The study found that among Thai consumers who opted for BEVs, 73% did so to save money on fuel costs. Additionally, 71% expressed concerns about the environmental impact of traditional cars, while 49% prioritized their own and their families’ health along with saving on maintenance expenses.
For those who preferred hybrid vehicles like HEVs and plug-in hybrid electric vehicles (PHEVs), the main motivations were saving money on fuel (73%) and reducing “range anxiety” (68%)—the fear of running out of charge during long journeys. Furthermore, 37% of respondents cited a desire to minimize pollution, dust, and greenhouse gas emissions.
Challenges and Changing Perceptions
The survey revealed that Thai customers are gradually becoming more open to BEVs, with a decrease in concerns compared to the previous year. The lack of sufficient public charging stations remained the biggest worry for 46% of respondents, down from 48% in 2023. Worries about limited range also decreased from 44% to 39%. Thai consumers have also grown accustomed to longer charging times, with 38% finding a charging time of 21 to 40 minutes acceptable, compared to 25% in 2023.
Altering Charging Preferences
While charging at home remains the most popular option in Southeast Asia, Thai consumers have shown significant changes in their preferences for charging outside their residences. The use of gas stations as charging points increased from 26% in 2023 to 34% in 2024. The number of people who desired the flexibility to charge their vehicles anywhere rose from 5% to 29%. Conversely, the demand for dedicated BEV charging points declined from 51% to 21%.
Factors Influencing Car Purchase Decisions
The study found that price and performance have become more crucial factors for Thai consumers when selecting a vehicle. The importance of price increased from 18% in 2023 to 47% in 2024, while performance climbed from 26% to 51%. Furthermore, features of cars have gained significance over time, with 53% of respondents considering them very important in their decision-making process, up from 49% in 2023.
Importance of Brand and Product Quality
Product quality remains the most significant factor for Thai car buyers, although its importance decreased from 64% to 53%. Brand recognition and image also experienced minor declines, with brand recognition dropping from 33% in 2023 to 31% in 2024, and the importance of brand image falling from 37% to 34%. Interestingly, Thailand ranks third in the region in terms of willingness to try new car brands, with 64% of respondents expressing interest. This can be attributed to factors such as accessibility to new tools (52%), the desire for novelty (49%), and affordability (36%).
Preference for In-Person Experiences and Payment Options
Despite the availability of advanced technologies like virtual or augmented reality, 92% of Thai car buyers still prefer to see the car in person before making a purchase decision. Test drives and negotiating with salespeople are important to 91% of respondents. Regarding payment methods, 74% of Thai consumers find installment plans favorable, while 21% prefer cash payments and 5% opt for flat payment plans. Notably, younger individuals aged 18-34 show greater interest in vehicle subscription services (47%) rather than outright car purchases.
Maintenance Considerations and Insurance
82% of Thai respondents consider the cost of maintenance and parts to be very important when choosing a car model. Furthermore, 63% are willing to invest in maintenance packages that include engine oil, replacement parts, and service fees. Additionally, 84% of those contemplating purchasing a BEV are interested in battery accident insurance.
Implications for Industry and Consumers
Mongkol Sompol, Deloitte Thailand’s automotive sector head, emphasizes the need for industry-wide changes in response to evolving consumer preferences. He suggests that competitors can gain a significant advantage by offering cost-effective options and ensuring long-term affordability for customers. On the other hand, consumers stand to benefit from increased competition, leading to a wider range of choices in vehicles, products, and related services.
In conclusion, the study conducted by Deloitte highlights the changing dynamics in Thailand’s automotive market. While BEVs have experienced a decline in popularity, HEVs have emerged as strong contenders. Shifting consumer preferences indicate a growing openness towards BEVs, with decreasing concerns about charging infrastructure and range limitations. Factors such as price, performance, features, and brand image influence Thai car buyers’ decisions. Moreover, Thai consumers still value in-person experiences when purchasing cars and prefer flexible payment options. The findings of this study have significant implications for the automotive industry and provide valuable insights for manufacturers, charging station providers, and related sectors to adapt to evolving consumer demands in Thailand.
