Thai consumers' interest in purchasing battery electric vehicles (BEVs) has declined over the past year, while hybrid electric vehicles (HEVs) have emerged as strong contenders, almost on par with BEVs, a survey by the multinational consultancy Deloitte shows.
The percentage of Thai respondents expressing interest in buying a BEV fell to 20% this year from 31% in 2023, the 2024 Global Automotive Consumer Study shows. Interest in HEVs, meanwhile, has jumped to 19% from 10%. Internal combustion engine (ICE) vehicles remain the top choice but have shown a steady downward trend, falling to 32% from 36%.
The trend of decreasing ICE preference among Thai consumers aligns with Indonesia, the Philippines and China, but contrasts with the United States, Japan and Singapore, where ICE popularity has rebounded.
Deloitte surveyed over 27,000 consumers from 26 countries in September to October 2023, with approximately 5,939 respondents from Southeast Asia, including around 1,000 Thai consumers. Deloitte Thailand conducted an additional Thailand Automotive Consumer Survey in April 2024, polling 330 consumers.
When analysing the reasons why Thais choose BEVs, it has been found that 73% of respondents want to save on fuel costs. Additionally, 71% are concerned about the environmental impact, and 49% prioritise both concern for their own health and their families' health, as well as saving on maintenance costs.
As for the reasons Thais choose HEV/PHEV, it has been found that 73% want to save on fuel costs. In addition, 68% want to reduce "range anxiety" -- the concern about how far a BEV can go on one charge -- and 37% want to reduce dust, smoke and greenhouse gases.
Among those who choose ICE vehicles, 78% want to reduce range anxiety and charging concerns. Additionally, 67% want to avoid unexpected costs (such as batteries or related systems), and 52% want flexibility in maintenance and customisation.
The survey reveals that Thai consumers are increasingly open to BEVs, with an overall decrease across all concerns between 2023 and 2024. The most significant concern remains the lack of sufficient public charging stations, mentioned by 46% of respondents, down only slightly from 48% a year ago.
Concerns about driving range have decreased from 44% to 39%. The survey also found that Thai people are adapting to longer charging times. The most acceptable charging duration has shifted upwards to 21-40 minutes, with 38% of respondents finding this acceptable. This is an increase from 25% in 2023.
Home charging remains the top preference in Southeast Asia, while Thai consumers' preferences for out-of-home charging options have shifted considerably. Petrol stations have gained popularity, increasing from 26% last year to 34% this year.
Notably, the popularity of "charge anywhere" options has surged from 5% to 29%. Dedicated BEV charging stations have seen a decline in preference, from 51% to 21%. In 2024, there has been a slight upward shift in the expected charging range per charge, with 44% of respondents indicating a preference for a range of 300 to 499 kilometres.
PURCHASE DECISIONS
When it comes to the factors influencing car purchase decisions among Thai consumers, price has become a more significant consideration, rising from 18% in 2023 to 47% in 2024. Performance has also gained in importance, from 26% to 51%. The importance of vehicle features has risen steadily, with 53% of respondents in 2024 finding them crucial compared to 49% in 2023.
Product quality remains the top factor influencing Thai car purchases, although it has seen a slight decrease from 64% to 53%. Brand familiarity and image have also shown minor declines. In 2024, 31% of respondents considered brand familiarity important, down from 33% in 2023.
Brand image has followed a similar trend, with 34% of respondents finding it important, compared to 37% in 2023. The survey found that 64% of Thai respondents are interested in trying new car brands, placing them among the top in the region alongside Malaysia, trailing Vietnam and the Philippines. This is driven by access to new technologies at 52%, the allure of trying something new (49%), and affordability (36%).
Despite the availability of technologies such as virtual or augmented reality (VR/AR) that can provide an immersive car-buying experience allowing for exploration of features, as well as online financial transaction options, 92% of Thai buyers still prefer physically experiencing the car before making a purchase decision. Ninety-one percent of respondents consider a test drive and negotiating with a salesperson to be essential.
Meanwhile, 74% of Thai consumers find instalments a convenient way to pay for their vehicles. However, 21% prefer cash purchases and 5% opt for balloon payment plans. Interestingly, the younger generation (aged 18-34) show a higher interest in vehicle subscription services (mentioned by 47% of respondents) compared to traditional car ownership.
Eighty-two percent of Thai respondents consider maintenance costs and parts prices to be crucial factors when choosing a car model. Sixty-three percent are willing to purchase a comprehensive maintenance package that covers engine oil, consumable parts and service fees, and 84% of buyers considering BEVs are interested in battery accident insurance.
"Understanding consumer perspectives allows us to better understand the direction of industry adaptation, which will also impact related businesses such as charging stations, financial, telecommunications and relevant technologies. All these sectors need to adapt simultaneously," said Mongkol Sompol, automotive sector leader at Deloitte Thailand.
"Manufacturers that can offer cost-effective options and provide long-term cost assurance for their customers will gain trust and a long-term competitive edge.
"Consumers, on the other hand, will benefit from the intense competition, enjoying a wider range of choices than ever before, including vehicles, products and other related services."
To read the full Deloitte 2024 Global Automotive Consumer Study, visit https://tinyurl.com/245pz3cy