Thais are less likely to buy new cars because of the sluggish economy, says Differential (Thailand) Co Ltd, a provider of data analytics, technology and research solutions.
According to the 2024 Customer Experience Report, which collected data from more than 2,500 Thai respondents who purchased cars between November 2020 and December 2022, 70% said they would consider buying a new car once their current car reaches a certain age, particularly after nine years of ownership.
This differs from the results of the previous report covering 2017-2018, when respondents planned to purchase a new car once their current one passed the seven-year mark.
"During the pandemic, there was a significant decrease in travel demand and mileage did not accumulate as much compared with previous periods," said Siros Satrabhaya, managing director at Differential (Thailand).
Economic uncertainties are playing a role in shaping car owners' behaviour, resulting in delays in new car purchases, he said.
The survey identified malfunctioning cars, changing lifestyles, and high maintenance costs as the top three reasons for replacing a vehicle.
Some 46% of respondents plan to purchase the same brand when they make their next purchase, while 6% indicated they would switch to a different brand.
Roughly 48% of respondents were unsure whether they would purchase the same brand or switch to another one.
The report found owners of Chinese car brands have the least loyalty, with only 28% saying they would stick with their current brand, while 9% indicated they would switch to another brand.
A full 63% were unsure whether their next car purchase would be one manufactured by their current brand.
In contrast, 48% of respondents who drive a car produced by a Japanese automaker said they would stick with the same brand, while 5% indicated they would switch to another brand.
Some 46% were unsure whether their next purchase would be produced by the same brand.
"As Chinese car brands just entered the Thai market, Thais might not have a fond relationship with them. They need time to capture consumers' hearts," said Mr Siros.
The report indicated more than half of battery electric vehicle (BEV) owners plan to stick with a BEV for their next purchase, while 25% would opt for an internal combustion engine (ICE)-powered car.
Among drivers of all vehicles excluding BEVs, 52% said their next purchase would be an ICE-powered car, while 23% said they would choose a hybrid or plug-in hybrid vehicle. Some 15% of respondents said they would switch to a BEV.
"As long as oil prices remain high, Thais are likely to buy BEVs for their next purchase," he said.