Survey shows that car owners in Thailand are looking to keep their cars for longer due to slowing economy

In a sluggish economy, big ticket items are inevitably the first to go off the shopping list, and so it is with new cars. Unless there is a pressing need to replace it, car owners will look to keep their vehicle for longer, simply because it makes more financial sense to do so.

Such is the case in Thailand, where a study published by Differential (Thailand), a provider of data analytics, technology and research solutions, reveals that most car buyers in the Kingdom are less likely to buy new cars because of the slowing economy, or stretch the period before getting a replacement, the Bangkok Post reports.

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% of the respondents said they would consider buying a new car only when their current vehicle reaches a certain age, with nine years being the average timeframe.

This differs from the results of the previous report covering 2017-2018, when respondents said they planned to purchase a new car once their current one passed the seven-year mark. While surveys aren’t definitive, they do provide an indication of the general sentiment being felt at a particular point in time, especially when it comes to gauging purchasing will.

While economic uncertainties are playing a role in shaping car owners’ behaviour with regards to new car purchases, other factors are also contributing to that thought process, said Differential (Thailand) MD Siros Satrabhaya. One of these is the reduced wear and tear brought about from less use during Covid-19.

“During the pandemic, there was a significant decrease in travel demand, and mileage did not accumulate as much compared with previous periods,” he said. The survey identified malfunctioning cars, changing lifestyles, and high maintenance costs as the top three reasons for replacing a vehicle.

As for brand loyalty, around 46% of respondents said they plan to stick with 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 from the brand they were with now.

In contrast, 48% of respondents who currently own a vehicle from a Japanese brand said they would stick with the same brand, while 5% indicated they would switch to another brand, with around 46% unsure whether their next purchase would be something from the same brand.

Siros said that this difference could be put down to the time needed to gain trust. “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,” he explained.

The good news for the electric vehicle (EV) crowd is that, once in, it’s in for good, as more than half of BEV owners surveyed said they plan to stick with a fully-electric solution for their next purchase. Still, it’s not for everyone, as around 25% also indicated that they would opt to switch back to an internal combustion engine (ICE)-powered car.

Excluding BEVs, 52% of drivers of all other powertrain types said their next purchase would be an ICE-powered car, while 23% said they would choose a hybrid or plug-in hybrid (PHEV) vehicle. Some 15% of respondents said they would switch to a BEV. All this could well change, of course, depending on external factors such as cost. “As long as oil prices remain high, Thais are likely to buy BEVs for their next purchase,” Siros said.

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