Philippines Used Car Market Outlook to 2026: Ken Research

 

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Philippines Used Car Market is expected to Gain Momentum from the Emergence of more Organized Players in the future along with Covid incited Surge in Demand: Ken Research

• The used car market structure in Philippines is expected to be consolidated in the future as the market share of players selling vehicles via organized channel is expected to surge. This will be mainly on account of transparent and fair used car dealings/trading process, aggressive after sales service by organized players.
• The onset of COVID-19 positively contributed to the revival of the used car market in Philippines post an initial contraction because of supply chain disruption and falling per capita disposable income due to physical restrictions imposed. As consumers are more concerned about their health and hygiene, there exist an increased perception towards ownership of private vehicles.
• Malaysian used car marketplace Carsome is likely to enter the Philippines in near future via joint ventures with local partners. The company has recently raised $290 million in a Series E funding round, valuing the used-car online marketplace at $1.7 billion.

Increasing Used Car Sales due to Covid-19: With the advent of Covid-19, consumers were witnessed to be more concerned on maintaining personal health and hygiene. Therefore, they are preferring the option of private transportation rather than availing public transport system. The change in consumer's behavior and preference is expected to act as an opportunity for the used car market in Philippines. Since, the pandemic does not seem to completely subside anytime soon, the demand for used cars will keep increasing until the entirety of the potential customers, who initially travelled via public transport, own a car. Brands such as Honda are now planning to establish their own pre-owned certified cars segment. The pandemic showed that while the new cars market is becoming vulnerable, the pre-owned cars market is becoming more resilient.

Strategic Partnerships between Dealers and Banks: The multi-brand dealers and banks are strategically partnering with online classified pages and online auto portals to make the process accessible and transparent for the buyers. Also, the banks have collaborated with websites such as AutoDeal and online auction platforms such as Automart for pre-owned cars. Since the vehicle buyers are looking out for used and new vehicles online, the banks strategically cross sell their loan products for both new and used units.

Emergence of Online B2C & C2B Players: In Philippines there are many classified portals facilitating the sale of used cars, however, there are no pure play companies offering B2C & C2C used car sales currently. But digitalization is changing the way the industry does business, with more and more sales taking place online. And with the onset of pandemic, the long-term outlook for online used car sales is quite encouraging. Players such as Carsome are planning to enter the market in near future and offer an online platform for used car sales in Philippines. Advanced technologies including artificial intelligence and machine learning would play an important role in improving revenues and reducing costs.

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.

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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

• 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

Singapore Used Car Market Outlook to 2025: Increasing Used Cars Demand Due to the Pandemic Contributes to Increase in Used Cars Sales during the Economic Crisis

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

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

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