Thursday, October 3, 2019

Malaysia Used Vehicle Market Outlook to 2025: Ken Research

The report titled “Malaysia Used Vehicle Market Outlook to 2025 - By Type of Distribution Channel (Organized and Unorganized Dealers), By Mode of Selling (Online and Dealership Walk-Ins), By Type of Vehicle (Sedans, Hatchback, SUVs, MPVs, LCV and others), By Vehicle Age(0-3 years, 3-5 Years, 5-8 Years and More than 8 years), By Brand(Perodua, Toyota, Honda, Proton, Nissan and Others)” provides a comprehensive analysis of the Used Vehicle market in Malaysia. The report also covers the overview and genesis of the industry, Market size in terms of Gross Transaction Value, overall market size in terms of Volume, trends and developments, issues and challenges, regulations in Malaysia, snapshot on Malaysia used vehicle auto finance, business models, value chain analysis, SWOT analysis, Buying decision parameters, competitive scenario and company profiles. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.

Malaysia Used Vehicle Overview and Size
Malaysia Used Vehicle market in terms of sales volume has increased at a single digit CAGR over the review period 2013-2018. The market is gradually surging with high car ownership ratio, growing urban population, increasing average ticket size, faster vehicle replacement rate and increasing support of Malaysian government in terms of policy formulation and regulations. The market was observed to be at the late growth stage.

The buyers in Malaysia are highly price sensitive with depreciating currency over the years. Government norms with respect to EEVs and ELV policy will positively impact Used Vehicle Market in Malaysia. Malaysians prefer to buy a used motor vehicle as new ones are very expensive. For middle or lower income group people, used cars have become more popular choices. Malaysia Used to New vehicle ratio has been increasing over the years leading to growth in sales volume of used cars in Malaysia.

Malaysia Used Vehicle Market Segmentation
By Distribution Channel: In Malaysia, the used vehicle market is highly fragmented with close 5000 used vehicle dealers operating in the market in the year 2018. The Organized players are very less, whereas unorganized dealers in Malaysia are very large in number present in different locations in Malaysia. Malaysia Used Vehicle Market in terms sales volume was largely dominated by Unorganized Dealers. On the other hand, organized dealer’s sales accounted the reaming share in 2018.

By Organized Dealers: Multi Brand Dealership outlets are dominating in Malaysia Used Vehicle Market due to the large portfolio of vehicles provided with a huge space for negotiation on purchase.
By Mode of Selling: In Malaysia, selling and buying a used vehicle via online platform is the most convenient method for customers and dealers as sale of used vehicles via online platforms eliminates middlemen and its commission margin. Lower commission charged attracts major population to purchase used vehicles through online platform.

By Type of Vehicle: Sedans and SUVs are the dominating segments in body type of used vehicle. Sedans have high average car life and lies within the budget of Malaysians. Preference to buy new MPV and LCVs was the key factor for low demand in the used vehicle segment.

By Vehicle Age: 5-8 years of vehicle age accounted for highest market share due to the average replacement rate of 6 years in Malaysia. The market share is followed by 3-5 years of vehicle age as selling of vehicle during this period generates a high resale value.

By City: Kuala Lumpur and Selengor are dominating the used vehicle market in terms of sales volume largely due to the higher percentage of people that solely depends on the passenger cars and growing working population observed in Selengor during last five years.

By Price Range: The average ticket size of Malaysia used vehicle market is growing over the years. The price range of MYR 30,000 - MYR 50,000 accounted for highest percentage share due the replacement rate along with the depreciation charged over the years on new vehicles.

By Brand: Perodua dominated the sales volume of used vehicle in Malaysia. Domestically manufactured vehicle brand include Perodua and Proton and Japanese brands that include Toyota, Honda and Nissan are the most preferred brands in the used-vehicle market due to strong brand preference, reliability, longer life span, and higher retention value of the used vehicle.

Competitive Landscape
Used Vehicle Market in Malaysia is highly fragmented with presence of around 5,000 dealers across all the cities in Malaysia. Used car dealers in Malaysia compete on the basis of number of dealership outlets; value added services, quality checks performed, insurance and finances and portfolio of used cars at their dealership store. There are numerous players that are operating in Malaysia Used Vehicle Market. Organized dealers include Direct Dealership Sales Agents (Toyota TopMark, Perodua Pre-Owned and Mercedes Benz Premium Selection) and Multi Brand Dealership Outlets (Deluxe Car Trader, Yap’s Auto Car City, Public Auto World, Keong Heng and others). Major online players for used vehicle market in Malaysia are Mudah.my, Carlist.my, Motor Trader, We Motor, My Motor, Autocari and others.

Malaysia Used Vehicle Market Future Outlook
The Malaysia Used Vehicle market in terms of sales volume is expected to grow in the future at a single digit CAGR over the forecast period (2018-2025E). In Future, it is anticipated that used car sales volume will be fuelled by increasing government policies related to used cars such as EEV and ELV, growing urban population, increasing car replacement rate, increasing inspection checks and growing customer confidence. Gross Transaction Volume will significantly increase at a positive CAGR during the period 2018-2025E due to the increasing average ticket size of a used vehicle over the years.

Key Segments Covered
By Distribution Channel
Organized Dealers
Multi Brand Retailers
Direct Dealership Sales Agent
Unorganized Dealers

By Mode of Selling
Online
Dealership Walk-Ins

By Type of Vehicle
Sedans
Hatchback
4WD/SUVs
MPVs
LCV
Others

By Vehicle Age
0 – 3 Years
3 – 5 Years
5 – 8 Years
More than 8 Years

By City
Kuala Lumpur
Selengor
Johor
Perak
Others

By Price Range
MYR 0 – MYR 30,000
MYR 30,000 – MYR 50,000
MYR 50,000 – MYR 70,000
MYR 70,000 – MYR 90,000
More than MYR 90,000

By Brand
Perodua
Toyota
Honda
Proton
Nissan
Others

Key Target Audience
OEM’S Companies
Multi Brand Dealers
Captive Dealers
Venture Capitalist Firms
Government/ Regulatory Authorities
Online Auto-Classifieds

Time Period Captured in the Report:
Historical Period: 2013-2018
Forecast Period: 2019E-2025E

Companies Covered:
Major Online Players in Malaysia
Carlist
Mudah
Motor Trader
We Motor
MyMotor
Autocari
myTukar
CarlistBid

Major Captive Dealers:
Toyota TopMark
Perodua Pre-Owned
BMW Premium Selection

Multi-Brand Dealers
Public Auto World Enterprises
Keong Heng Auto
East 28 Motors
Puncak Auto Enterprises
Yap’s Auto Car City
ML Advance Auto Seller
Global Wheels Automotive

Key Topics Covered in the Report
Malaysia Used Vehicle Market Introduction (Overview, Genesis, Business Cycle)
Malaysia Used Vehicle Market Ecosystem
Malaysia Used Vehicle Market Business Model
Used Vehicle Market Size Malaysia
Malaysia Used Vehicle Auto Finance
Malaysia Used Vehicle Market Segmentation
Trends and Developments in Malaysia Used Vehicle Market
Issues and Challenges in Malaysia Used Vehicle Market
Malaysia Used Vehicle Market Regulations
SWOT Analysis Malaysia Used Vehicle
Buying Decision Parameters in Malaysia Used Vehicle Market
Malaysia Used Vehicle Market Competition Scenario
Malaysia Used Vehicle Market Future Projection, 2018-2025E
Future Outlook of Malaysia Used Vehicle Market Segmentations, 2018-2025E
Analyst Recommendations

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