Monday, March 15, 2021

Digital Enablement, Adoption of Omni-Channel Business Models and Growing Demand from Tier-2 Cities to Drive Used Car Sales in Indonesia: Ken Research

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  • As an impact of Covid-19, OLX Indonesia saw a drop of 15-25% in the number of used car listings on its platform in 2020.
  • Used car platform, Carro, experienced a 600% increase in demand for certified used cars during the pandemic. The platform offered home test drives as well as the option of purchasing cars completely online.
  • In July 2020, BeliMobilGue became a part of OLX Indonesia and rebranded itself as OLX Autos, offering instant car selling service to customers. OLX Autos is present in 7 cities with ~113 inspection centers and 2,000 partners throughout Indonesia.

Shift towards Online Platforms: In order to tap into the online used car market, many multi-brand and independent dealerships are expected to increase their digital presence. Along with listing used car inventory online through online portals, some dealerships are also investing in their own websites and Instagram pages. Used car platforms are likely to focus on developing a transactional marketplace to enable 100% online end-to-end transactions from the convenience of the homes without having to visit the showrooms.


Increasing Demand Hatchbacks & SUVs: Although traditionally MPVs have dominated the used car sales in Indonesia, recently there has been increasing demand for Hatchbacks or City Cars and SUVs. The cultural shift from large families to nuclear families and buying cars for individual needs are driving the demand for these cars.

Leveraging Latest Technologies: The online platforms as well as dealerships looking for expanding their presence online, plan to implement latest technologies such as 360 degrees 3D view of the interiors & exteriors, artificial intelligence to analyze car condition through pictures, and more in order to create a better user browsing experience. These technologies along with the provision of detailed inspection reports as well as services such as car financing and insurance on a single platform are expected to be a game-changer in the market.

Analysts at Ken Research in their latest publication “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)observed that the used cars market in Indonesia witnessed improvement in the used to new car sales ratio over the period 2014-2020. Increasing value-added service offerings, the rising presence of online classified platforms and marketplaces as well a large number of financing companies offering credit for used cars are contributing to the industry’s growth. The Used Car Industry in Indonesia is expected to grow at a CAGR of ~15.7% on the basis of gross transaction value and ~14.2% on the basis of sales volume over the forecast period 2020-2025.

Key Segments Covered: -

Indonesia Used Car Market (On the basis of GTV)

Indonesia Used Car Market (On the basis of Sales Volume)

Indonesia Used Car Market Segmentation (On the basis of Sales Volume)

By Market Structure (On the basis of Sales Volume & GTV)

Organized

Unorganized

By Type of Car

MPVs

Hatchbacks

SUVs

Others

By Brand

Toyota

Honda

Daihatsu

Suzuki

Others

By Vehicle Age

Less than 1 year

1-3 years

3-5 years

5-8 years

More than 8 years

By Mileage

Less than 20,000 Km

20,000-50,000 Km

50,000-80,000 Km

80,000-120,000 Km

More than 120,000 Km

By Regions

DKI Jakarta

East Java

West & Central Java

North Sumatera

Others

By Age Group of Buyers

18-30 Years

30-50 Years

More than 50 Years

Organized Used Car Market

By Sales Channel

Multi-brand Showrooms

OEM-Certified/Authorized Dealership Outlets

Unorganized Used Car Market

By Sales Channel

Customer to Customer (C2C)

Local Dealerships

Dealerships Covered

Mobil88

Toyota Trust (PT Astra Auto Trust)

Hyundai Auto Safe (PT Hyundai Mobil Indonesia)

Suzuki Auto Value (PT Suzuki Indomobil)

Diamond Smart Auto (PT Mitsubishi Motors Krama Yudha Sales Indonesia)

PT Tunas Ridean Tbk

Online Auto-Classifieds/Platforms Covered

OLX Indonesia

Mobil123

Carmudi

Oto.com

Carsome

Carro

Key Target Audience

Car Dealerships

Car Manufacturers

Car-Rental and Leasing Companies

Online Auto Classified Companies

Industry Associations

Regulatory Bodies

Used Car Auction Companies

Banks & NBFCs

Time Period Captured in the Report:-

Historical Period: 2014-2020

Forecast Period:  2021-2025

Key Topics Covered in the Report: -

Macroeconomic Overview and Overall Automotive Demand in Indonesia

Overview and Genesis of Indonesia Used Car Industry

Trends and Growth Drivers in the Industry and Challenges Faced

Indonesia Used Car Market Size and Segmentations, 2014 – 2020

Ecosystem and Value Chain of Used Car Industry

Customer Decision Making Parameters & Brand Perception Mapping

Cross Comparisons between Major Authorized Dealerships and Online Auto-Classifieds/Platforms and Company Profiles

Future Market Size and Segmentations, 2020-2025F

Covid-19 Impact on the Industry, the Way Forward & Upcoming Online Business Models

Analyst’s Recommendations

For More Information on the research report, refer to below link: -

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-used-car-market-outlook-to-2025/412166-100.html

Related Reports by Ken Research: -

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/indonesia-car-finance-market-outlook/286575-93.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/saudi-arabia-used-car-market-outlook-to-2025/356552-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/india-used-two-wheeler-market-outlook-to-2025/384703-100.html

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

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