Survey: Only 30% of Thai owners of Chinese cars will buy another Chinese make, Japanese makes lead with 48%

The Chinese carmakers have invaded Thailand and this is not just seen at the recent 2024 Bangkok Motor Show where the Chinese brands held among the biggest booths. The moment you exit Suvarnabhumi Airport, you are greeted with large billboards promoting brands like MG, GAC Aion, and BYD.

BYD dominated the Thai battery electric vehicle (BEV) market last year while MG and GWM’s Haval once outsold Honda in the SUV market. While the Chinese brands rise in popularity and the sales charts, do their owners have second doubts?

Singapore-based business consulting firm, Differential Asia, posted the results of its 2024 Thailand Service Customer Experience Index Study. The study focuses on Thai drivers’ loyalty towards car brands.

Japanese brands which still hold the majority of new vehicle sales in the Kingdom emerged as front runners in customer loyalty with 48% of respondents expressing their willingness to repurchase the same brand. 39% of American brand owners also expressed their loyalty to stick with the same brand.

However, when it comes to the Chinese brand owners, only 28% would remain loyal to the brand. Factors that influence brand loyalty include product quality satisfaction and design, brand reputation and image, as well as familiarity and comfort with the brand.

Chinese brands have been making inroads into Thailand over the last 5 years. Though the perception of poorly made Chinese cars has mostly been reduced, they are still relatively new compared to more established brands from Japan or America.

The study showed 9% of Chinese brand owners would switch to a new brand compared to 5% for Japanese cars and 6% for American vehicles. 63% of Chinese car owners responded they are unsure about being loyal to the brand compared to 46% for Japanese and 54% for American brands.

Aside from brand loyalty, Differential Asia also surveyed Thais’ preference towards battery electric vehicles (BEV). The study categorised respondents into two groups: BEV owners and non-BEV owners which include hybrids and plug-in hybrids (PHEV).

The results showed that 42% of BEV owners would stick with all electric for their next vehicle purchase. Besides, 21% of BEV owners responded considering switching to internal combustion engine (ICE) while 22% of BEV respondents would switch to hybrid/PHEV.

Conversely, 48% of non-BEV owners would continue with internal combustion engine (ICE) vehicles for their future purchases. Only 14% of owners would switch to BEV while 21% of owners would switch or remain with hybrids and PHEVs.

The consulting firm revealed the primary factors that influence new car purchases and powertrain choices are exterior design, brand, and interior design.