Throttle trouble: Thai motorists hit the brakes on new car buys

Thai motorists are hitting the brakes on new car purchases due to economic jitters, revealed in a new report by Differential (Thailand) Co Ltd, a data analytics, technology, and research firm.

The 2024 Customer Experience Report, which polled over 2,500 Thai car buyers from November 2020 to December 2022, found that a whopping 70% of respondents intend to buy a new set of wheels only after their current car clocks nine years.

This marks a notable shift from the 2017-2018 findings, where drivers aimed for a swap after just seven years, said Siros Satrabhaya, managing director at Differential (Thailand).

โ€œDuring the pandemic, travel plummeted, and car mileage barely budged compared to previous years. Economic uncertainty is clearly steering motoristsโ€™ decisions, causing hesitation in trading in their keys for new models.โ€

The report highlighted that broken-down cars, evolving lifestyles, and steep maintenance costs are driving factors for vehicle replacement.

When it comes to brand loyalty, about 46% of respondents plan to stick with the same brand for their next car, 6% are set on switching, and 48% remain on the fence.

Owners of Chinese car brands showed the least brand loyalty, with only 28% eager to stay loyal, 9% planning to swap, and a significant 63% undecided. By contrast, 48% of Japanese car drivers say theyโ€™ll stick with their current brand, 5% are eyeing a switch, and 46% are undecided, Siros said.

โ€œChinese car brands are newcomers to the Thai market and are still working to win hearts. They need time to build loyalty.โ€

Interestingly, the study revealed a growing enthusiasm for battery electric vehicles (BEVs). Over half of current BEV owners plan to stick with this eco-friendly option, while 25% are thinking of flipping back to internal combustion engine (ICE) cars, Bangkok Post reported.

Among drivers of non-BEV vehicles, 52% are set on an ICE car for their next ride, 23% are considering hybrids or plug-in hybrids, and 15% are eyeing BEVs, added Siros.

โ€œAs long as oil prices stay high, Thais are likely to lean towards BEVs for their next car purchase.โ€

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Bob Scott

Bob Scott is an experienced writer and editor with a passion for travel. Born and raised in Newcastle, England, he spent more than 10 years in Asia. He worked as a sports writer in the north of England and London before relocating to Asia. Now he resides in Bangkok, Thailand, where he is the Editor-in-Chief for The Thaiger English News. With a vast amount of experience from living and writing abroad, Bob Scott is an expert on all things related to Asian culture and lifestyle.

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