Survey suggests auto-makers should gear up for recovery

TNS conducted the survey in August and September amongst people who are intending to buy a vehicle in the next 12 months and found that a quarter of them are planning to complete their purchase before the end of this year.

However, there could be a relatively slow start to 2015, with just 21 per cent of those surveyed committing to a new car in the first quarter, compared to 27 per cent who plan to buy in the second quarter and 28 per cent in the third. 

Apiruk Ratanavichien, automotive research director for Thailand at TNS, said of the findings: “It’s encouraging to see that people are still considering completing their new car purchase before the end of the year. Those manufacturers introducing new models during this month’s ‘International Motor Expo’ may be concerned by the slow start to 2015, however for those that can put the right pricing and promotion in place, there is still scope to stimulate the market.” 

Getting the finance model right can encourage people to bring their purchase forward, he said. 

Of those surveyed, a low down payment and a low interest rate were appealing to 42 per cent and 38 per cent, respectively. 

Reassurance of good after-sales service is also a key deciding factor for potential car buyers, with free 24-hour roadside assistance (54 per cent) and a replacement when their car is being serviced (48 per cent) carrying strong appeal.

Despite the political instability seen this year, potential auto buyers in Thailand still feel optimistic about their personal outlook, with 62 per cent feeling their standard of living will improve, the survey found.

“When instability is the ‘new normal’, people find a way to carry on with their lives and fulfil their own aspirations. We have seen from the study that despite the uncertainty at a macro level, when people’s personal situation is in order – and the deal is right – they are keen to go ahead with their planned purchases,” said Apiruk. 

The company’s survey – also known as the car market “sentimenter” – is a local study of overall consumer sentiment and the outlook on new car purchases of more than 500 people intending to buy cars across key areas of the country – greater Bangkok, Chiang Mai, Khon Kaen, Chon Buri and Songkhla – exploring how economic and political factors affected the decisions and future plans of car buyers. 

“Knowing the sentiment of society and consumers in a particular industry is our devotion. There has been uncertainty in the country, especially in the automotive industry with increasing competition, and a complex business environment such as incentives for first-time car buyers in the past, and new mobility solutions,” he added.

TNS is part of Kantar, the data investment management division of WPP and one of the world’s largest insight, information and consultancy groups.