• Internal Combustion Engine Vehicles (ICEV) remain the primary purchase choice in Southeast Asia. 31% of Thais will choose a Battery Electric Vehicle (BEV) as their next vehicle, the highest proportion in Southeast Asia. Lower fuel costs still top the reason for consumers to switch to electrified vehicles.
• For those opting for a BEV as their next vehicle, public charging station availability ranks as the highest concern.
• Thais are willing to wait up to 60 minutes to charge their car and expect a distance of 300-500 kilometers per charge. Smartphone apps are top of the mind for choice of payment.
• Both Thai and regional consumers indicate that they want a first-hand car as their next car. Thai people will buy their next vehicle based on product quality, vehicle features, and brand image.
• Dealers are still the most trusted choice among consumers, especially for first-hand cars. However, used- car customers are open for independent/aftermarket facilities due to costs and convenience.
• Thai customers are open to allowing connected cars to exchange information over the region with the expectation of increased information around maintenance updates and vehicle health reporting, maintenance cost forecasts based on driving habits, suggestions regarding safer routes (i.e., avoid unpaved roads), and customized suggestions regarding ways to minimize service expenses.
• Thai consumers are willing to accept data exchange of biometric data collected by sensors in the cockpit and sensor data related to vehicle status
• If other additional services are required for connection, Thai’s and most consumers in Southeast Asia choose to be charged on a per-use basis over up-front as part of the vehicle purchase price, or as part of a subscribed monthly service.
Bangkok, Thailand, 23 May 2023. The transportation ecosystem is in a transitional phase, thanks to insights from consumer feedback. From September through October 2022, Deloitte surveyed more than 26,000 consumers in 24 countries to explore opinions regarding various critical issues impacting the automotive sector, including consumer interest in electric vehicle (EV) adoption, brand perception, and advanced technologies. This annual study aims to answer essential questions that can help companies prioritize and better position their business strategies and investments. The study covers more than 6,000 consumers in Southeast Asia, including Thailand, Indonesia, Malaysia, the Philippines, Vietnam, and Singapore, with a sample of approximately 1,000 Thai consumers.
The Global Automotive Consumer Study 2023 finds that internal combustion engine vehicles remain the dominant choice in Southeast Asia. 31% of Thais will choose a Battery Electric Vehicle (BEV) as their next vehicle, the highest proportion in Southeast Asia. Lower fuel costs still top the reason for consumers to switch to electrified vehicles. However, the demand growth rate has jumped across the region compared to survey results from the previous years, as consumers look to reduce fuel expenditures. For Thai’s, the reason for choosing BEV is because they want a better driving experience and a car that can be used as a backup battery. For those choosing BEVs as their next vehicle, the largest concern was surrounding the lack of availability of public charging infrastructure at 48% and 54% among Thais and regional consumers respectively, followed by the time required to charge and cost/price premium of BEVs. Plugging BEVs at home is the most favourable choice. In public locations, 51% of consumers would prefer to charge their EV at dedicated EV service stations while 26% would go to traditional gas stations with EV chargers. 64% of Thai consumers have a willingness to wait for a car charge of between 10-60 minutes and 41% expect a running range of 300-500 kilometers per charge. Smartphone applications are the most preferred way to pay for public EV charging, making up 67% and 51% of Thai and Southeast Asian respondents respectively.
91% of Thais said they would choose a first-hand car as their next vehicle, and the most critical factors are product quality, vehicle features, and brand image.
Thai customers are open to allowing connected cars to exchange information over the region.
85% of Thais expect maintenance updates and vehicle health reporting, 84% want maintenance cost forecasts based on driving habits, 86% desire suggestions regarding safer routes (i.e., avoid unpaved roads), and customized suggestions regarding ways to minimize service expenses.
Thai consumers are willing to accept data exchange of biometric data collected by sensors in the cockpit and sensor data related to vehicle status.
If other additional services are required for connection, 49% of Thais and 44% of regional consumers will choose to be charged on a per-use basis over up-front as part of the vehicle purchase price, or as part of a subscribed monthly service. Mr. Mongkol Somphol, Automotive Sector Leader at Deloitte Thailand, added, "This change in the automotive industry is very remarkable. As it is an essential industry in Thailand with its supply chain branched out in many dimensions, many foreign entrepreneurs are investing in it.
The changing needs of consumers will be a critical issue for the business sector to adapt. Chodok Panyavaranant, Ph.D., Clients & Markets Manager at Deloitte Thailand, added that "This report reflects the business opportunities and new players that will fulfill consumer demands."
Mr. Mongkol also added “However, everything is subject to change. Both energy prices, technology, and continuity of government support Therefore, it is worth watching and following the changes closely."
For more information
2023 Global Automotive Consumer Study: https://www.deloitte.com/global/en/Industries/automotive/perspectives/global-automotive- consumer-study.html
2023 Global Automotive Consumer Study Southeast Asia perspectives: https://www2.deloitte.com/sg/en/pages/consumer-business/articles/sea-automotive- consumer-study.html
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