Showing posts with label Used Vehicle Warranty Malaysia. Show all posts
Showing posts with label Used Vehicle Warranty Malaysia. Show all posts

Wednesday, June 29, 2022

New opportunity for Used Car Dealers in Malaysia raised as a result of the Covid-19 pandemic, driven by consumers’ preference of owning personal vehicles and greater ease & convenience offered by the online platforms: Ken Research

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  • Before Pandemic, the used car sales remained constant for about 20 years. The industry flourished post pandemic in terms of sales due to changes customers’ preferences and proper initiatives by the Malaysian government with the introduction of Penjana Scheme and escalating used car sourcing.
  • Shoppers are moving away from conventional methods and & adopting the use of online platforms for buying & selling their used cars. Through merger & acquisitions, many C2B players, start-ups and auto-classified portals are entering Malaysia market and expanding their presence on visualizing the potential in the industry.
  • ~60% of the used car sales comes from Kuala Lumpur & Selengor as a result of High Metropolitan population and disposable income in the region. East Malaysia has a high demand on pickup trucks due to geographical factors. East Malaysian cities namely Sabah & Kuching have generated sales majorly by pickup trucks. Pickup trucks come with better power and manoeuvrability, are especially used for off road commercial applications such as logging, construction, and plantation.

Significant Growth of Digital Forum:

Large number of consumers have started selling and buying cars through online auto classifieds, transactional marketplaces and social media due to significant increase in internet and smartphone penetration in the country. Auction Houses are also increasing their spending on online advertising and generating leads through these platforms. Search for major second-hand car brands on the Internet has increased since last year and a half, says Google trends.

Used Cars for sale in Malaysia

Sales Volume in the Market dominated by the Unorganized dealers: Due to the large presence across the nation, independent dealers (Car Tents) dominate the market. These dealers are also increasing their online presence by listing their inventory on their own website or Facebook account or other platforms resulting in the growth of the market.

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Target on value-added services: To enhance the margins and to provide a hassle-free experience to the buyers, a large number of dealerships and online platforms are offering value-added services such as online car evaluation, certification, vehicle inspection, financing, insurance and ownership transfer.

Incorporation of Latest Technologies to enhance digital experience: Future Technologies involving Artificial Intelligence & Virtual Reality is expected to enhance the digital buying & selling experience for consumers by offering 360° interior & exterior view of the car, estimating car price online via uploaded images, analyzing consumer behavioral insights to show relevant ads according to interests & more.

Covid-19 led to Increase in Car Sales: Due to Movement Control Order restrictions, the demand for used cars significantly diminished during the peak of Covid-19 pandemic. This was due to low supply and closure of OEM dealerships and local tents during lockdown which was further fueled by decrease in purchasing power which led to postponing of new and used car purchases.  However, as the lockdown restrictions were on ease, there was a significant growth in used car sales as people started to prefer personal vehicles over shared transport. Other factors increasing the sales were favorable tax policies and sale of vehicles by people with multiple car ownership. During the initial months of the year 2020, the demand for used cars in the country remained low, however there was increase in demand in the second half of the year post ease in the lockdown. To drive sales and to increase customer football, the manufacturers are expected to shift focus towards digital medium.

Analysts at Ken Research in their latest publication Malaysia Used Car Market Outlook To 2026F (Third Edition) – Demand for Used Cars Increased Due to Shift in User preference towards Personal Mobility, induced by Covid-19observed that post pandemic, Malaysia is in a late growth phase in the used car market in South East Asia and is slowly recovering from the economic crisis. The increasing credit availability in the country along with car loan moratoriums and other incentives under Penjana is driving the growth of the industry. The industry is expected to demonstrate strong growth in the future led by growth of online used car platforms that provide convenience to both buyers and sellers and makes the entire process smoother. The Malaysia Used Car Market is expected to grow at a CAGR of 9.7% on the basis of GMV over the forecast period 2021-2026F.

Key Segments Covered: -

By Market Structure

Organized

Unorganized

By Sales Channel

B2C/OEM organized

C2C

Auction

By Source of Lead generation

Online

Dealership walk-ins

By Car Segment

Sedan

Hatchback

SUV

MPV

Pickup trucks

Others (convertibles, coupe, sports vehicles, etc.)

By Price

Less than MYR 30,000

MYR 30,000-50,000

MYR 50,000-70,000

MYR 70,000-90,000

More than 90,000

By Brand

Perodua

Proton

Honda

Toyota

Nissan

Others (Mitsubishi, Mazda, Mercedes, Audi, etc)

By Region

Kuala Lumpur

Selengor

Johor

Penang

Perak

Others

By Ownership period

Less than 2 years

2-4 years

4-6 years

6-8 years

More than 8 years

By Mileage

Less than 20,000

20,000-50,000

50,000-80,000

80,000-120,000

Above 120,000

By Fuel

Petrol

Diesel

Hybrid

Electric

Companies Covered

OEM Dealerships

Perodua Pre-owned

Proton Certified Pre-owned

Toyota Topmark

Mazda Certified Pre-owned

BMW Premium Selection

Mercedes Benz Certified Pre-owned

Online Portals – C2B platforms

Carsome

MyTukar

MyMotor

Online Portals – Online Auto Classified Platforms

Mudah.my

Motor Trader

Carlist.my

WeMotor

Motor Trader

Autocari

Oto.my

B2B Auction players

G-Mart

MUV

NG Chan Mau & Company

Pickles Auction

Key Target Audience

Used Car Companies

OEMs

Online Used Car Portals

Auction players

Used Car Financing Companies

Government Bodies

Investors & Venture Capital Firms

Used Car Dealerships

Used Car Distributors Auction Houses

Used Car Associations

Time Period Captured in the Report: -

Historical Period – 2015-2021

Forecast Period – 2021-2026F

Key Topics Covered in the Report: -

Executive Summary

Research Methodology

Malaysia Used Car Market Overview

Malaysia Used Car Market Size, 2015-2020

Malaysia Used Car Market Segmentation, 2020

Growth Drivers in Malaysia Used Car Market

Issues and Challenges in Malaysia Used Car Market

Regulatory Framework

Ecosystem and Value Chain of Used Car Industry in Malaysia

Customers Purchase Decision Making Parameters

Cross Comparison between Major OEMs and Multi-brand Dealers and Company Profiles & Product Portfolios

Snapshot on Online used car market

Snapshot on C2B and online classified market

Snapshot on Auction Market

Future Market Size and Segmentations, 2021-2025F

Covid-19 Impact on the Industry & the way forward

Analysts’ Recommendations

Related Reports by Ken Research: –

Indonesia Used Car Market Outlook to 2025

Saudi Arabia Used Car Market Outlook to 2025

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249

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