Krungsri Auto, a leader in automotive finance under Bank of Ayudhya PCL., unveils three key insights into the shift of consumer behavior in the automobile market. From customer data collected from automotive financing services at nationwide motoring events throughout 2024, the findings highlight customers' preference for longer installment plans, adjustment in used car pricing trends in response to increased competition from new market entrants, and a significant market shift towards EV. In response, Krungsri Auto reinforces its leadership by building a comprehensive automobile users' ecosystem to cater to the various needs of this new generation. The 'GO by Krungsri Auto Application' is designed to deliver a fully digital auto lending service, which supports a wide range of products while delivering end-to-end solutions tailored to the evolving requirements spurred by changes in consumer behavior.
Mr. Congsin Congcar, Head of Krungsri Auto Group, Bank of Ayudhya PCL., said, "Amid economic challenges, rising household debt, and declining purchasing power, consumers are adjusting and planning their spending more carefully. At Krungsri Auto, we are committed to maintaining a core principle of prudent credit assessments in alignment with public sector guidelines and sustaining our competitive strength. With a strong focus on delivering personalized financial solutions that meet individual consumer needs while supporting the growth of Thailand's automotive industry, Krungsri Auto participated in over 27 motoring events across 16 provinces last year to gain valuable consumer insights. By analyzing the emerging behavioral trends, we continuously enhance our products and services to better meet consumers' needs. At the same time, we remain committed to Krungsri Auto Responsible Lending principle and Creating Shared Value (CSV) approach, ensuring a balance between business expansion, the advancement of the automotive industry, and long-term social sustainability, which in turn drives sustainable growth.
Key Consumers Insights from Nationwide Motoring Events, Unlocking 2025 Automotive Trends
Gen Z and Office workers: The New Driving Force in the Automotive Market
The automotive industry is undergoing a significant transformation, with Gen Z and office workers aged 25-44 emerging as the key drivers of EV adoption. This group increasingly favors Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), and they prioritize performance, functionality, and long-term cost efficiency over brand reputation. This trend is particularly evident among urban commuters who travel short distances (5-20km per day) and primarily reside in major cities such as Bangkok and its greater metropolitan area1 , where EV charging infrastructure is more developed compared to other areas. Chinese EV brands continue to dominate the market, accounting for 84.7%2 of total EV sales. The top three brands with the highest vehicle registrations - BYD, MG, and NETA3 - stand out for their value-driven pricing and cutting-edge technology, while the growth of American brands appears to be slowing. These insights align with Krungsri Auto's loan application data collected from motoring events nationwide over the past year.
Beyond EVs, office workers remain the primary purchasing force in the motorcycle and big-bike market, particularly among those aged 21-40 whose loan applications for big bikes have steadily increased. From a regional perspective, the Eastern region has recorded a rise in the loan application trend, in contrast to Bangkok, where demand is declining.
Used Cars: Striking the Balance Price and Quality
2024-2025 marks a period of significant change for the used car market, with prices dropping by 10-30%. This presents a prime opportunity for Gen X and Gen Y consumers, the core demographic for used car financing, to access a wider range of high-quality vehicles at more competitive prices. Market data indicates a shifting preference, with 3-5-year-old vehicles now dominating the market at 52%, followed by vehicles under three years old at 20%, and 6-8-year-old models representing 19%. These age ranges offer the optimal balance of affordability and performance, making them highly attractive to value-conscious buyers. In terms of fuel types, internal combustion engine (ICE) vehicles continue to lead the used-car market at 54%, Followed by HEV and PHEV models at 38%, while BEV vehicles currently hold 9% of the market share.
Longer Car Ownership, A Reflection of Economic Uncertainty
Amid continuing economic uncertainty, Thai consumers are delaying new car purchases and extending the lifespans of the vehicles they still possess. In 2024, the average vehicle ownership period in Thailand had increased from seven years to 10 years, driven by falls in resale values in the used-car market and high household debt levels. These factors have led consumers to postpone vehicle upgrades and prioritize long-term value and cost efficiency. Buying behavior has also shifted, with buyers now taking longer to make purchasing decisions. They are seeking comprehensive information and evaluating multiple factors, including total cost of ownership, long-term usability, and current trends in the used car market.
Krungsri Auto Redefines Automotive Finance with a Comprehensive Automobile Users Ecosystem
Krungsri Auto is strengthening its position by redefining vehicle ownership experience through a comprehensive automobile users ecosystem that offers seamless, fast, and accessible financial solutions tailored to the diverse needs of automobile users. At the forefront of this transformation is Digital Auto Lending, enabling customers to apply for financing across all Krungsri Auto products via the GO by Krungsri Auto Application and receive loan approvals within 30 minutes. This innovation underscores Krungsri Auto's commitment to revolutionizing the digital lending experience. Krungsri Auto has also adopted a direct-to-consumer marketing strategy, actively engaging with customers at nationwide motoring events to gain deep market insights. These insights drive continuous enhancements to products and services, ensuring they align with regional demand and evolving consumer behavior. Elevating the customer experience further, Krungsri Auto introduced the Ultimate Test Drive & Ride event, bringing together 36 brands and 94 models in a single venue, allowing consumers to make well-informed decisions through real-world driving experiences, overcoming traditional barriers of time and accessibility.
Krungsri Auto is committed to transforming automotive finance while driving sustainable growth in Thailand's automotive industry. The company continues to innovate and develop new products and services that align with industry trends, creating a better everyday life for automobile users.
1 https://www.krungsri.com/th/research/research-intelligence/ev-survey-22
2 DLT - Dec 2024
3 DLT - Jan 2025