Thailand’s car mobility-as-a-service market is being boosted by rising tourism, EV adoption, digitalization, and foreign operators: Ken Research
1.Thailand’s Car MAAS industry growing at a robust rate after two years of sluggish growth due to Covid-19.
Recent Trends In Thailand Car Mobility-as-a-Service (MAAS) Market
Due to the limitations placed on travel and movement by COVID-19 in 2020 and 2021, the market was significantly impacted, leading to high costs and poor occupancy. But now Thailand has developed into a popular destination for leisure and MICE travel as well as for the production of automobiles, all of which have boosted the industry. Due to a variety of factors, including high prices, the drive toward sustainability, and the adoption of EVs, consumer preferences are changing from private ownership of a vehicle to shared mobility and automobile rental or leasing.
2.In Thailand’s car MAAS business, problems including market dominance, fierce competition, and rising repair costs are only a few of the problems.
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The majority of the car mobility sector in Thailand is still mostly disorganized despite technological advancements and the advent of new age entrepreneurs. As a result, clients frequently obtain subpar service quality. While the unorganized sector might reach a wider audience, the organized sector provides safeguards and assurances in addition to value-added services. Another problem is the fierce competition; new business models, such those in the field of shared mobility, are emerging as disruptive and are posing risks to traditional automobile rental and leasing services. The emergence of ride-hailing applications and the growing acceptance of online reservations may further split the market, increasing competition. Additionally, the cost of marketing for developing and maintaining websites and mobile applications has increased due to the necessity to digitize. Car rental businesses typically have substantial overhead costs and large budgets for fleet maintenance. The industry also lacks a governing organization and strict rules governing the market for ride hailing, car sharing, and rental cars. Because there are no industry-wide norms or rules, there is a high concentration of unorganized companies, which lowers the quality of services while maintaining low costs.
3.The growth of Thailand’s automotive mobility-as-a-service sector is being driven by booming tourism, EVs entry, and technological development.
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The demand for car mobility services has grown over time as a result of rising international and domestic tourism, as these services are practical for commuting inside cities and have clear pricing. The introduction of LTR Visa will make it simpler for tourists with high spending levels to remain in the nation for longer. Through a variety of specialized marketing initiatives, the nation is casting a wider net in an effort to draw a wider range of tourist demographics. Another key growing factor luring customers to use their services more frequently is the presence of EVs in the fleets of vehicle rental firms. Customers prefer renting or leasing EVs rather than owning them in order to take advantage of the most recent advancements because EV technology is characterized by quick iterations and is more expensive. Furthermore, the primary drivers of the growth of the nation’s car rental services will be preferences for the use of technologically advanced personal vehicles. Lastly, proliferation of smartphones has led to considerable growth for mobile application-based business models. This will not only make these services more accessible but also more affordable with increased competition and transparent pricing.
