Increased Used Car Awareness: The awareness and marketing in used car market of Philippines has played an important role in changing customer’s mentality from buying a new car to a used car. Social media platforms such as Facebook has now emerged as a viable platform to deal in used cars and make people aware about the certified used cars, merits of buying a pre-owned unit and others. The recent development in increase usage of social media websites have really helped the unorganized/ C2C market of used cars in Philippines as it is free medium to market an individual unit among friends and family.
Focus on Value-Added Services: 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 amongst others so as to enhance their margins and provide a hassle-free experience to the buyers.
Emergence of Classifieds and Online Auto Portals: Currently many companies are using omni-channel strategy to reach out to the customer. This type of channel is useful as digital presence is an important parameter to improve the customer penetration while the physical presence helps in building of trust of the customers. Currently, the small multi brand used car retailers have started to operate their own Facebook pages in order to increase their reach to the correct audience.
The customer uses both digital and physical channel simultaneously in order to find the best product according to their needs. The online auto portals and classified pages let the used car dealer/ individual seller to list their vehicle on their web page for a certain period of time after the payment of listing fees. The vehicles are listed on these portals in order to increase the probability of the vehicle getting sold.
Impact on Used Car Sales due to Covid-19: The strict lockdown measures in the initial few months (March – May) led to the steep decline in the market. Multiple trends in the used cars industry were observed since the onset of Covid-19. Moreover, ~ 2 million Filipinos lost their jobs due to the pandemic. These car buyers were unable to pay the back the entire auto loan amount and the banks had to forfeit their cars. This led to an increased supply of bank repossessed cars in the market. The demand for used cars was on the upswing once the lockdown was lifted. The increase in the sales in the following months was sufficient to compensate for the losses incurred during the ECQ months. The used car market declined by only 4% in 2020 as against the new car market which fell by a whopping 40%.
Adoption of Latest Technologies to enhance Digital Experience: Leveraging technologies such as Artificial Intelligence & Virtual Reality is expected to enhance the digital experience for consumers by offering 360° interior & exterior view of the car, estimating car price online via uploaded images, analysing consumer behavioral insights to show relevant ads according to interests & more.
Analysts at Ken Research in their latest publication - “Philippines Used Car Market Outlook To 2026 (Third Edition): Driven by the Pandemic Incited New Opportunities for Used Car Dealers and Increased Penetration in the Online Space for Used Car Transactions” observed that used car market in Philippines is expected to grow in the future, with the increased awareness on health and hygiene followed by the onset of COVID-19. The demand for used cars in the market is expected to increase as the real inflation in the country is increasing year on year and the citizens are left with little cash at disposal. The increasing credit appetite of banks fueled by competition from foreign financing companies would provide a boost to the industry. The competition is expected to increase within dealerships as customers would either approach a DDSA or multi brand dealer over another individual used car seller. The Philippines Used Car Market is expected to grow at a CAGR of 7.6% on the basis of GTV (Gross Transaction Value) over the forecast period 2021P-2026F.
Key Segments Covered
- By Market Structure
- Organized
- Unorganized
- By Sales Channel (Organized Segment)
- Multi-brand Dealers
- Direct Dealership Sales Agents
- Bank Repossessed Cars
- By Source of Lead generation (Organized Segment)
- Online
- Dealership walk-ins
- By Average Ticket Size
- Less than PHP 100,000
- PHP 100,000-300,000
- PHP 300,000-500,000
- PHP 500,000-700,000
- PHP 700,000-1,000,000
- More than PHP 1,000,000
- By Region
- Metro Manila
- Northern Luzon
- Southern Luzon (except Metro Manila)
- Visayas
- Mindanao
- By Type of Vehicle
- Sedan
- SUV
- Hatchback
- Pickup Vans
- MPV
- Others (convertibles, coupe, crossover, sports vehicles, etc.)
- By Fuel
- Gasoline
- Diesel
- Others (Hybrid and Electric)
- By Type of Vehicle Manufacturer
- Japanese
- Korean
- American
- Chinese
- German
- British
- Others
- By Brand
- Toyota
- Mitsubishi
- Hyundai
- Ford
- Nissan
- Honda
- Isuzu
- Suzuki
- Others (Kia, Mazda, Mercedes, Audi, etc.)
- By Average Replacement Period
- Less than 2 years
- 2-4 years
- 4-6 years
- 6-8 years
- More than 8 years
Request for Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTI0MDM4
- By Mileage
- Less than 10,000 Kms
- 10,000-20,000 Kms
- 20,000-50,000 Kms
- 50,000-75,000 Kms
- 75,000-100,000 Kms
- Above 100,000 Kms
Companies Covered
- OEM Dealerships
- Toyota Certified
- Nissan Intelligent Choice
- BMW Premium Selection
- Mercedes Benz Certified Pre-owned
- Banks (Repossessed Car Auctions)
- EastWest Bank
- Security Bank
- BDO Unibank
- Online Portals – Online Auto Classified Platforms
- Carmudi
- Carousell
- AutoDeal
- Automart
- Zigwheels
- Philkotse
- Multi-Brand Dealers
- Carmax
- Carmix (by Lausgroup)
- Automobilico
- All Cars
- Five Aces
- Berylle Car Sales
Time Period Captured in the Report:-
- Historical Period – 2016-2021P
- Forecast Period – 2021P-2026F
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- Philippines Used Car Market Overview
- Philippines Used Car Market Size, 2016-2021P
- Philippines Used Car Market Segmentation, 2021P
- Growth Drivers in Philippines Used Car Market
- Issues and Challenges in Philippines Used Car Market
- Government Regulations
- Ecosystem and Value Chain of Used Car Industry in Philippines
- 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
- Philippines Ancillary Services 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:
Philippines Used Car Market Outlook to 2026 (Third Edition)
Related Reports
Follow Us
LinkedIn | Facebook | Twitter | YouTube
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
No comments:
Post a Comment