Showing posts with label South Korea Used Car Market Size. Show all posts
Showing posts with label South Korea Used Car Market Size. Show all posts

Friday, July 8, 2022

South Korea Used Car Market Size, Share, Outlook, Growth Rate, Analysis, Covid-19 Impact, Top Key Players, and Forecast to 2026: Ken Research

 

While the Automotive Sectors of Most Countries Struggled to Show Resilience during the Economic Crisis Incited by Covid-19, South Korea’s Used Cars Market Witnessed a Steep Increase in Car Sales: Ken Research

Key Findings

  • Online Classified are analysing the patterns of purchase by customers and capturing it through fintech and other tools such as digital marketing, enabling them to provide tailor-made solutions for customer. AI and ML are being used to transform the car buying experience for customers.
  • The Dealers in the used car market are scattered and small scale. The primary reason behind this was the law introduced by the Korean Government in 2013 which has been revoked in 2019. Since 2022, domestic new Car players such as Kia and Hyundai are expected to enter the market and provide quality vehicles certified by them.
  • Local cars, such as those from Hyundai and Kia, have become pricier, which lowered the entry bar and created room for imported cars to join the market. This will propel growth of the organized used car sector as the sales occurring through the certified pre-owned car dealerships in the country will increase.

Growing demand for Authorized Used Cars Outlets in the Market: Consumers are either scammed by a dealer or they try to directly purchase a used car from an owner to avoid scams. The situation is serious for consumers in terms of both intangible and tangible damages they can suffer. This has led foreign carmakers to actively run secondhand car businesses in South Korea with their own brand authentication systems, to instill trust in drivers buying their used models.

Increasing Used Car Sales due to Covid-19: The pandemic made owning a car an unavoidable aspect of an individual’s life as travelling via public transport can be risky. People who preferred public transport during the pre-Covid times are now the potential customers of the used cars market. Subsequently, the pandemic does not seem to completely subside soon, the demand for used cars will keep increasing. Since most of these people who could not afford a car in the first place would prefer the most optimal solution available, that is, purchasing a pre-owned car.

Growing popularity of Digital Showrooms: The online space in the used cars market has been gaining traction over time on account of Covid-19 protocols that forced several dealers to introduce virtual showrooms. These digital platforms help facilitate minimum in-person contact during the process of selling a car by providing 360 degree view of the interiors of the car to enhance digital experience of consumers. Use of advanced technologies such as AI is helps to valuate car online by providing pictures.

Improved Focus on Value-Added Services: Since there are a higher proportion of organized players in the used cars segment, more dealers have shifted their focus on providing value-added services to survive the increasing competition. It has been observed that many of the multi-brand dealers too have started providing additional services such as extended warranty, insurance, after sales services, assistance in paperwork, etc., to become a ‘one-stop’ destination for used car buyers.

Organized Segment’s Share to Rise: Organized dealers which include authorized or multi brand dealerships with higher inventory or more number of physical outlets in South Korea, contribute to the majority of the market share. The share of organized dealers is expected to further rise in the future as big domestic players are anticipated to enter the market. Moreover, buying used cars from organized players comes with the added advantage of availing maximum value added services. Especially for Medium valued to Premium used cars, it is seen that customers are more concerned about the after sales services and warranties that are provided for the vehicle.

Analysts at Ken Research in their latest publication South Korea Used Car Market Outlook To 2026: Relaxed Government Regulations on Big Companies Entering Used Car Market to Facilitate Increase in the Used Cars Sales and Improve the Organized Market Shareobserved that South Korea is in a growth phase in the used car market in South East Asia and is gradually recovering from the economic crisis after the pandemic. The increasing E-Commerce penetration is giving a boost to this industry. Going forward, the industry is expected to demonstrate further growth in the short-medium term fueled by the growth of online used car platforms that provide convenience to both buyers and sellers. South Korea Used Car Market is expected to grow at a CAGR of 1% on the basis of sales volume over the forecast period 2021P – 2026F.

Key Segments Covered

  • By Market Structure
  • Organized
  • Unorganized
  • By Organized Channel Source of Lead generation
  • Online
  • Dealership walk-ins
  • By Sales Channel
  • B2C
  • C2C
  • By Type of Car
  • Luxury Sedan
  • Sedan
  • Hatchback
  • SUV
  • MPV
  • Others (Sports car, Station wagon)

 

  • By Engine Size
  • 2000 CC and Below
  • 2000 CC – 3000 CC
  • 3000 CC – 4000 CC
  • 4000 CC and Above

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  • By Brand
  • Hyundai
  • Kia
  • GM Korea
  • Renault Samsung
  • Ssangyong
  • Benz
  • BMW
  • Genesis
  • Audi
  • Volkswagen
  • Others (Includes both domestic and international brands)
  • By Region
  • Gyeonggi
  • Seoul
  • Gyeongnam
  • Gyeongbuk
  • Incheon
  • Busan
  • Chungnam
  • Dae-Gu
  • Jeonnam
  • Jeonbuk
  • Chungbuk
  • Gangwon
  • Gwangju
  • Daejeon
  • Ulsan
  • Jeju
  • Sejong
  • By Age
  • 0-2 Years
  • 2-4 Years
  • 4-6 Years
  • 6-8 Years
  • 8-10 Years
  • More than 10 Years
  • By Mileage
  • Less than 20,000
  • 20,000 – 40,000 Km
  • 40,000 – 60,00 Km
  • 60,000 – 80,000 Km
  • 80,000 – 100,000 Km
  • Over 100,00 Km
  • By Fuel
  • Petrol
  • Diesel
  • Electric
  • Others (Petro-Electric, Diesel-Electric, etc.)
  • By Transmission Type
  • Auto
  • Manual
  • Others (Semi-Auto, CVT)

Companies Covered

  • Authorized Dealers
  • Benz Hansung
  • BMW Deutsch Motor
  • BMW Bavarian Motors
  • KCC Auto
  • C2B/C2B2C/B2C
  • K-Cars
  • Aj SellCar
  • Autohands
  • Hey Dealer
  • U-Car
  • Autoplus
  • Online Portals – Online Auto Classified Platforms
  • Encar
  • Kb Cha Cha Cha
  • Auction Players
  • Hyundai Glovis
  • Lotte Rental – Auction
  • Aj SellCar Auction
  • K Car Auction

Time Period Captured in the Report:-

  • Historical Period – 2015-2021P
  • Forecast Period – 2021P-2026F

Key Topics Covered in the Report

  • Executive Summary
  • Research Methodology
  • South Korea Used Car Market Overview
  • South Korea Used Car Market Size, 2015-2021P
  • South Korea Used Car Market Segmentation, 2021P
  • Growth Drivers in South Korea Used Car Market
  • Issues and Challenges in South Korea Used Car Market
  • Government Regulations
  • Ecosystem and Value Chain of Used Car Industry in South Korea
  • Customers Purchase Decision Making Parameters
  • Cross Comparison between Major Authorized Dealers and Multi-brand Dealers 
  • Snapshot on Online used car market
  • Future Market Size and Segmentations, 2021P - 2026F
  • Covid-19 Impact on the Industry & the way forward
  • Analysts’ Recommendations

For more information on the research report, refer to below link:

South Korea Used Car Market Outlook To 2026

Related Reports

Philippines Used Car Market Outlook to 2026 (Third Edition)

Egypt Used Car Market Outlook to 2026

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Contact Us:
Ken Research

Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249

Tuesday, February 22, 2022

South Korea Used Car Market Industry Analysis & Size

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The report titled “South Korea Used Car Market Outlook To 2026: Relaxed Government Regulations on Big Companies Entering Used Car Market to Facilitate Increase in the Used Cars Sales and Improve the Organized Market Share” provides a comprehensive analysis of the used car market trends and performance in South Korea. The report covers several aspects such as volume of used cars sold & market size in terms of gross transaction value, target audience, growth facilitators, Government regulations, constraints & challenges faced by the industry, and so on. The report also covers a snapshot on South Korea online used car market, business models, value chain analysis, SWOT analysis, buying decision parameters, competitive scenario and company profiles. South Korea Used Car Industry report concludes with projections for future of the industry market size, market segmentations, the impact of Covid-19, and analyst take on the future market scenario.

South Korea Used Car Market Overview and Size:

South Korea Used Car market increased at a CAGR of 0.8% (by sales volume in units) during 2015-2021P. The market has reached its maturity phase. A combination of restrictions on public transport and a movement towards private travel have accelerated the sale of used cars. Moreover, the availability of various financing facilities offered through banks and NBFIs, high internet penetration and increased government spending have been instrumental factors in facilitating the growth of the South Korean used car market.

South Korea Used Car Market Segmentations

By Market Structure (Organized, and Unorganized): The organized segment dominates the South Korean used car market covering about 90% of the overall market space. The removal of restrictions on big finished car makers’ entry into the local used car market in 2019 and the formal entry of these players in 2022 will further contribute to increasing the organized used car market.

By Organized Market Source of Lead generation (Online, Dealership walk-ins): The lead generation for used cars is South Korea has primarily taken place via the online platforms. The Authorized Dealers showcase the available used cars for sale mainly through their own websites. While, several multi-brand dealers prefer listing their inventory on the classified platforms as well. For buying and selling used cars in South Korea, social networking sites like Kakao talk, Facebook, and Instagram are gaining traction.

By Sales Channel (B2C and C2C):

B2C sales in South Korea mainly occur through dealership walk-in and inventory listed on online classified platforms or through dealers’ websites and Instagram pages, while C2C sales are mostly generated based on Online Classifieds & Offline References from friends & family. Social Media platforms like Kakaotalk and Facebook, are used extensively for C2C promotions and advertisements in order to reach a large set of potential customers quickly and free of cost.

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By Type of Car:  SUVs and Luxury Sedans are quite popular in South Korea. SUVs, Sedans and Luxury Sedans account for more than 70% of the market share.

By Brand: Hyundai is the market leader in South Korea accounting for the major share of used cars sold by volume. Korean made brands such as Hyundai, Kia Motors and Ssangyong Motor, are some of the most preferred car brands due to strong brand preference, reliability and longer life span of the pre-owned car. Amongst the continental cars, BMW and Mercedes Benz are the most preferred.

By Region: Most of the used cars market is concentrated in the Gyenonggi and Seoul region in South Korea.

By Age: Generally, any new car in South Korea is owned for 3 - 4 years before being sold to another owner. Therefore, the average age of used cars in the country also lies within the same bracket.

By Kilometers Driven: Cars with a mileage of 60,000-80,000 kilometers dominated the used cars market in South Korea in the year 2021P.

By Fuel: Petrol and diesel run cars dominate the used car market in South Korea. Electric and hybrid cars accounted for about 10% in 2021P.

Snapshot on Online Used Car Landscape

The number of online used car portals and marketplaces have risen significantly along with rising internet penetration in South Korea over the last few years. Major dealers such as K-Cars, Aj Sell Car, Auto plus and others are using online platforms to increase their sales. Hence, there was an inevitable expansion in the lead generation of used cars via the online means. Social networking sites including Facebook and Instagram play a key role in expanding the used cars market in South Korea. Emergence of online auto-portals and classified platforms such as Encar and Kb Cha Cha Cha have provided increased visibility and credibility to the customer-to-customer transactions in the unorganized segment. South Korea had one of the fastest internet networks around the world. The internet infrastructure has been a high priority in numerous governmental regulations that led to its rapid and thorough expansion, contributing positively to the growth of the industry.

Competitive Landscape of South Korea Used Car Market

Various authorized dealerships, multi-brand outlets & independent (standalone as well as clustered dealers) operating in the industry have led to increased competition in the used car market. Most multi-brand dealers are providing value added services including easy financing options, handling the paperwork and warranty, to expand their market share and to compete with authorized dealers.

South Korea Used Car Future Outlook & Projections

The used car industry in South Korea is expected to demonstrate a decent growth in the future. It is expected to increase at a five year CAGR of 1.0% (by sales volume in units) from 2021P to 2026F. It is expected that the share of the organized segment in the used cars space will increase over time as more brands are planning to enter the OEM pre-owned certified space. Certain foreign established C2B players are too considering South Korea Used Car market a growing and profitable venture. Moreover, people in South Korea are realizing the advantages of buying a pre-owned cars through authorized outlets as there has been a shift in the general consumer preferences.

Key Segments Covered

  • By Market Structure
  • Organized
  • Unorganized
  • By Organized Channel Source of Lead generation
  • Online
  • Dealership walk-ins
  • By Sales Channel
  • B2C
  • C2C
  • By Type of Car
  • Luxury Sedan
  • Sedan
  • Hatchback
  • SUV
  • MPV
  • Others (Sports car, Station wagon)
  • By Engine Size
  • 2000 CC and Below
  • 2000 CC – 3000 CC
  • 3000 CC – 4000 CC
  • 4000 CC and Above
  • By Brand
  • Hyundai
  • Kia
  • GM Korea
  • Renault Samsung
  • Ssangyong
  • Benz
  • BMW
  • Genesis
  • Audi
  • Volkswagen
  • Others (Includes both domestic and international brands)
  • By Region
  • Gyeonggi
  • Seoul
  • Gyeongnam
  • Gyeongbuk
  • Incheon
  • Busan
  • Chungnam
  • Dae-Gu
  • Jeonnam
  • Jeonbuk
  • Chungbuk
  • Gangwon
  • Gwangju
  • Daejeon
  • Ulsan
  • Jeju
  • Sejong
  • By Age
  • 0-2 Years
  • 2-4 Years
  • 4-6 Years
  • 6-8 Years
  • 8-10 Years
  • More than 10 Years
  • By Mileage
  • Less than 20,000
  • 20,000 – 40,000 Km
  • 40,000 – 60,00 Km
  • 60,000 – 80,000 Km
  • 80,000 – 100,000 Km
  • Over 100,00 Km
  • By Fuel
  • Petrol
  • Diesel
  • Electric
  • Others (Petro-Electric, Diesel-Electric, etc.)
  • By Transmission Type
  • Auto
  • Manual
  • Others (Semi-Auto, CVT)

Companies Covered

  • Authorized Dealers
  • Benz Hansung
  • BMW Deutsch Motor
  • BMW Bavarian Motors
  • KCC Auto 
  • C2B/C2B2C/B2C
  • K-Cars
  • Aj SellCar
  • Autohands
  • Hey Dealer
  • U-Car
  • Autoplus
  • Online Portals – Online Auto Classified Platforms
  • Encar
  • Kb Cha Cha Cha
  • Auction Players
  • Hyundai Glovis
  • Lotte Rental – Auction
  • Aj SellCar Auction
  • K Car Auction

Time Period Captured in the Report:-

  • Historical Period – 2015-2021P
  • Forecast Period – 2021P – 2026F

Key Topics Covered in the Report

  • Executive Summary
  • Research Methodology
  • South Korea Used Car Market Overview
  • South Korea Used Car Market Size, 2015-2021P
  • South Korea Used Car Market Segmentation, 2021P
  • Growth Drivers in South Korea Used Car Market
  • Issues and Challenges in South Korea Used Car Market
  • Government Regulations
  • Ecosystem and Value Chain of Used Car Industry in South Korea
  • Customers Purchase Decision Making Parameters
  • Cross Comparison between Major Authorized Dealers and Multi-brand Dealers 
  • Snapshot on Online used car market
  • Future Market Size and Segmentations, 2021P - 2026F
  • Covid-19 Impact on the Industry & the way forward
  • Analysts’ Recommendations

For more information on the research report, refer to below link:

South Korea Used Car Market Growth Rate, Size, Trends and Revenue 2026

Related Reports

Indonesia Used Car Market Outlook To 2025 – By Market Structure (Organized & Unorganized), By Type Of Car (MPVs, Hatchbacks, SUVs & Others), By Brand (Toyota, Honda, Daihatsu, Suzuki & Others), By Vehicle Age, By Mileage, By Customer Age And By Region (DKI Jakarta, East Java, West & Central Java, North Sumatera & Others)”

Saudi Arabia Used Car Market Outlook To 2025- By Market Structure (Organized & Unorganized), By Type Of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-Ups And Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford And Others), By Type Of Sourcing, By Age Of Vehicle (Less Than 1 Year, 1-3 Years, 3-5 Years & More Than 5 Years), By Kilometers Driven (Less Than 50,000 Km, 50,000-80,000 Km, 80,000-120,000 Km & More Than 120,000 Km) And By Region (Northern, Southern, Central, Eastern And Western)”

Malaysia Used Car Market Outlook To 2025 (Second edition) – Growth of Online Used Car Platforms and increased shift from using public transport to personal cars, fueled by Covid-19 to accelerate Industry's Growth

Follow Us

LinkedIn | Facebook | Twitter YouTube

Contact Us:
Ken Research

Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249