Deloitte Thailand unveils the results of the 2024 Global Automotive Consumer Study, exploring consumer opinions on key issues impacting the automotive industry. The study surveyed over 27,000 consumers from 26 countries worldwide during September to October 2023, covering approximately 5,939 respondents from Southeast Asia, including around 1,000 Thai consumers. To gain a more in-depth perspective on Thai consumer preferences, Deloitte Thailand conducted an additional Thailand Automotive Consumer Survey in April 2024, polling 330 Thai consumers. By combining these datasets, the study offers valuable insights into Thai consumer automotive preferences, with two key findings highlighted below.
Consumer Trends and Perspectives on Electric Vehicles
The 2024 survey reveals a decline in Thai consumer interest in Battery Electric Vehicles (BEVs) compared to the previous year, from 31% to 20%. Internal Combustion Engine (ICE) vehicles remain the top choice but have shown a steady downward trend, falling from 36% to 32%. Meanwhile, Hybrid Electric Vehicles (HEVs) have emerged as a strong contender, gaining popularity almost on par with BEVs, increasing from 10% in 2023 to 19% in 2024. This trend of decreasing ICE preference among Thai consumers aligns with Indonesia, Philippines, and China, but contrasts with the United States, Japan, and Singapore, where ICE popularity has rebounded. In the Thai pre-owned car market, ICE vehicles remain the dominant choice at 54%, followed by HEVs and PHEVs at 38%. BEVs trail behind at 9%.
When analyzing the reasons why Thais choose BEVs, it has been found that 73% want to save on fuel costs. Additionally, 71% are concerned about the environmental impact, and 49% prioritize both concern for their own health and their families’ health, as well as saving on maintenance costs. As for the reasons Thais choose HEVs / PHEVs, it has been found that 73% want to save on fuel costs. In addition, 68% want to reduce range anxiety, and 37% want to reduce dust, smoke, and greenhouse gases. Among those who choose ICE vehicles, 78% want to decrease 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 customization.
The survey reveals that Thai consumers are increasingly open to BEVs. In terms of concerns about BEVs among Thais, there has been an overall decrease across all aspects between 2023 and 2024. The most significant concern remains the lack of sufficient public charging stations. This concern has seen a slight decrease from 48% to 46%. Similarly, concerns about driving range have also 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 for 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, falling 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 charging range of 300 to 499 kilometers per charge.
Factors influencing Thai consumer’s car purchase decisions
Survey results reveal changes in the factors influencing car purchase decisions among Thai consumers. Price has become a significant consideration, rising from 18% in 2023 to 47% in 2024. Similarly, performance has also gained importance, increasing 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 in 2024, although it has seen a slight decrease from 64% to 53%. Brand familiarity and brand image have also experienced 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 in 2024, 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, and affordability, at 49% and 36% respectively.
Despite the availability of advanced technologies such as VR or AR that can provide an immersive car-buying experience with car feature exploration and online financial transaction options, 92% of Thai car buyers still prefer physically experiencing the car before making a purchase decision. 91 % of the respondents consider a test drive and negotiating with a salesperson to be essential. Meanwhile, 74% of Thai consumers find installments a convenient way to pay for their vehicles. However, 21% of Thai car buyers prefer cash purchases, while 5% opt for balloon payment plans. Interestingly, the younger generation of Thais (aged 18-34 years old) show a higher interest, of 47%, in vehicle subscription services compared to traditional car ownership. 82% of Thai respondents consider maintenance costs and spare part prices to be crucial factors when choosing a car model. 63% of Thai car buyers are willing to purchase a comprehensive maintenance package that covers engine oil, consumable parts, and service fees, and 84% of Thai car buyers considering BEVs are interested in purchasing battery accident insurance.
“Gathering insights from consumers worldwide provides us with fresh perspectives on both a global and regional scale. These insights will inform integrated solutions that open new avenues for enhancing value in the automotive industry. In 2024, HEVs have shown notable growth in popularity among Thai consumers due to their ability to save on fuel costs, reduce range anxiety, and minimize emissions. This exemplifies the importance of understanding regional preferences. By tuning in to these evolving consumer needs, automotive players can strategically adapt their offerings and stay ahead of the curve.” stated Mr. Sung Jin Lee, Automotive Sector Leader at Deloitte Southeast Asia.
Mr. Mongkol Sompol, Automotive Sector Leader at Deloitte Thailand, said that “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. 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 within the automotive industry.”
Dr. Chodok Panyavaranant, Clients & Market Manager at Deloitte Thailand, added: “We are witnessing rapid changes in the Thai automotive market. Deloitte’s analysis of trends and data from various reports confirms that Thai consumers are no longer thinking the same way as before. This shift will undoubtedly intensify competition in the industry.”
