Thai people increasingly prefer hybrid cars

Deloitte survey shows hybrid cars are dominating while demand for electric cars is decreasing.

A survey by multinational consulting firm Deloitte shows that Thai consumers' interest in purchasing BEVs (Battery Electric Vehicles) has decreased over the past year, while hybrid HEVs (Hybrid Electric Vehicles) have emerged as strong competitors, almost on par with BEVs.

The Global Automotive Consumer Study 2024 found that the percentage of Thais expressing interest in buying a BEV fell to 20% this year from 31% in 2023. Meanwhile, interest in HEVs jumped to 19% from 10%. Internal Combustion Engine (ICE) vehicles remain the top choice but have been steadily declining, from 36% to 32%.

Thais' interest in electric vehicles will drop to 20% in 2024 from 31% in 2023, according to Deloitte research. Photo: AudiVN

Not only Thais are losing their preference for BEVs, the trend is also happening in Indonesia, the Philippines and China, but in contrast to the US, Japan, Singapore - where the preference for ICE cars is recovering.

Deloitte surveyed more than 27,000 consumers from 26 countries between September and October 2023, with 5,939 respondents from Southeast Asia, including about 1,000 Thai consumers. Deloitte Thailand conducted an additional auto consumer survey in April, polling 330 consumers.

When analyzing the reasons why Thais choose BEVs, the report found that 73% of respondents wanted to save on fuel costs. Additionally, 71% were concerned about environmental impact, while 49% prioritized both caring for their own health and their family’s health, as well as saving on maintenance costs.

The reasons why Thais choose HEVs are 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.

Of those who choose an ICE vehicle, 78% want to avoid range anxiety and worry about charging. Additionally, 67% want to avoid unexpected costs such as battery... and 25% want flexibility in maintenance or vehicle modifications.

The survey also found that Thai consumers are increasingly open to BEVs, with overall interest rates dropping in 2023-2024. The most significant concern was the lack of public charging stations, cited by 46% of respondents, down only slightly from 48% last year.

Concerns about range dropped from 44% to 39%. The survey also found that Thais are gradually adapting to longer charging times. Acceptable charging times increased from 21-40 minutes, with 38% of respondents finding this time acceptable. This is up from 25% in 2023.

Home charging remains the top choice in Southeast Asia, while Thai consumers’ preferences for out-of-home charging options have shifted significantly. Charging stations are more popular, up from 26% last year to 34% this year.

Notably, the popularity of the “charge anywhere” option skyrocketed, from 5% to 29%. Dedicated BEV charging stations declined in popularity, from 51% to 21%. In 2024, there was a slight shift in range, with 44% of respondents saying they preferred a range of 300-499 km.

Car buying decision

When it comes to factors influencing Thai car buying decisions, price is the more important factor, rising from 18% in 2023 to 47% in 2024. Performance also becomes more important, rising from 26% to 51%. The importance of vehicle features has steadily increased, with 53% of respondents in 2024 saying they are very important compared to 49% in 2023.

Product quality remains the top factor influencing Thai consumers’ car purchase decisions, although it has dropped slightly from 64% to 53%. Brand familiarity and image have also declined slightly. In 2024, 31% of respondents considered brand familiarity important, down from 33% in 2023.

Brand image followed a similar trend, with 34% of respondents saying it was important, up from 37% in 2023. The survey found that 64% of respondents in Thailand were interested in trying new car brands, putting them in the top spot alongside Malaysia, behind Vietnam and the Philippines. This was driven by access to new technologies at 52%, the appeal of trying something new (49%) and the ability to spend money (36%).

92% of Thais prefer to experience the car in person rather than through virtual reality (VR/AR) technology before making a purchase decision. While 91% of respondents consider test driving and negotiating with a sales person to be necessary.

74% of Thai consumers find installment payments a convenient way to pay. However, 21% prefer to buy in cash and 5% choose to pay in installments. Interestingly, the younger generation (18-34 years old) is more interested in car registration services, with 47% of respondents mentioning it, compared to traditional car ownership.

82% responded that maintenance costs and spare parts prices were important factors when choosing a vehicle model. 63% were willing to purchase a comprehensive maintenance package, including engine oil, consumable parts, and service fees. 84% of buyers considering BEVs were concerned about battery warranties.

“Understanding the consumer perspective allows us to better understand the direction of the automotive industry’s adaptation, which will also impact related businesses, such as charging stations, finance, telecommunications and related technologies. All of these sectors must adapt simultaneously,” said Mongkol Sompol, Deloitte automotive industry leader.

"Manufacturers that can provide cost-effective solutions and ensure long-term costs for customers will gain trust and a long-term competitive advantage. On the other hand, users will benefit from fierce competition, with more choices, from products to related services."