SEA Used Car Market Overview:
The SEA Used Car industry is
currently positioned in the early growing stage and is anticipated to register
a double digit CAGR between the forecasted period 2021 to 2026F. The customers
will tend to switch to used cars and new cars at a rate faster than before,
depicting rapid change in consumer preferences. The market structure is
expected to be consolidated in the future as the market share of players
selling vehicles via organized channel is expected to surge.
SEA Used Car market is currently
in the late growing phase, growing at a CAGR of ~% during 2015-2021. Covid-19
pandemic had significantly reduced the purchasing power of consumers across the
globe, due to which the ability to buy new car plunged. A quite significant
shift in consumer’s preference towards used cars has been observed in the SEA
region. Growth of transactional marketplaces offering one-stop solutions to
buyers & connecting dealers, financing and insurance companies is also
driving the used car market in SEA.
SEA Used Car Market Segmentation
By Business
Model (C2B and B2C+C2C): The Overall
SEA Used Car market is expected to witness a sales volume of ~ million units
through C2B channel in 2021 with a CAGR of ~% during the period 2015-2021. The
C2B Platforms enable sellers to sell used cars directly to the online players
who in turn sell the inventory to the dealers either through bidding or by
general sales process while charging a margin.
Due to the presence of large
number of organized and unorganized multi brand dealer in the market selling
used cars to customers, B2C sales channel remains as the second most dominant
channel after C2B. The advantage of purchasing a used car through a B2C Channel
is the service offerings they provide such as aftersales, warranty and
financing options among others which is lacking in C2C sales channel.
By Country: Thailand is the Market Leader in Terms of both
Sales Value and Volume, reporting ~ million Used Car Transactions in 2021. Malaysia
Contributes the Most in terms of Online Used Car Market in the SEA Region as a
result of the high Internet Penetration of about ~% at the start of 2022.
Snapshot:
Indonesia Used Car Market Analysis:
Overview: The entry of various financing companies in the
used car industry, as well as the launch of OEM-certified used car programs,
has been the major growth drivers of the industry.
Competition Analysis: The industry in Indonesia is largely unorganized
due to the preference of consumers towards standalone local, independent
dealers or the ones located in used car exchanges, along with peer-to-peer
sales, facilitated by online auto-classified platforms.
Snapshot: Thailand Used Car Market Analysis:
Overview: Increasing demand for private vehicles, reduction
in purchasing power, easy availability of finance, and increasing VAT on new
cars are the main reasons behind positive growth in used car sales revenue.
Competition: Online market is dominated by Carro and Carsome in
the region. Both foreign as well as domestic companies are present in the
market. The players compete on parameters such as proximity, value added
services, prices, promotional offers and tie ups with major financial
institution. In order to increase their revenue, the players offer free gifts
and warranty as a part of promotion.
Snapshot:
Malaysia Used Car Market:
Overview: Increasing demand for private vehicles, increasing
purchasing power, easy availability of finance, increased govt. incentives to
ensure sale of new cars are the main reasons behind positive growth in used car
sales revenue.
Competition:
Some of the players operating in the B2C and C2C
online used car segment are – Carsome, MyMotor, MyTukar, MUV and others.
Snapshot:
Philippines Used Car Market:
Overview: There are a number of growth drivers which has
resulted in expansion of the market; these include a surge in the demand of
private cars, increasing per capita income, convenient financing facilities,
increased internet penetration and enhanced digitalization of the used cars
space.
Competition: Used Car Market in Philippines is highly
fragmented as majority of the market is unorganized.
Snapshot: Singapore Used Car Market Analysis:
Overview: There has been an immense expansion in the lead
generation of used cars via the online means in the last decade.
Competition: There exists intense competition in the fragmented
market.
Snapshot:
Vietnam Used Car Market:
Overview: Leveraging the growing internet penetration rate,
various online classified players launched their operation in Vietnam post
2013. The increasing preference of consumers towards availing digital medium
for their purchases has enhanced the sales prospect via C2C channel through
classified platforms.
Competition: Vietnam’s used car market is highly fragmented
with presence of large number of organized and unorganized multi brand dealers.
South East Asia Used Car Market Competitive
Landscape
SEA used car market is an
extremely fragmented, with many players capturing more than one geography in
the region. With several C2B & B2C online players, auto-classified
platforms, OEM-certified, brand-authorized dealerships, multi-brand outlets,
and independent (standalone as well as clustered) dealers operating in the
business, there is fierce competition in the highly fragmented market.
Recently, several new players have begun exploring the untapped markets in
Southeast Asia. Price, vehicle age and residual value, brand value, and the
need for maintenance are some of the most critical aspects influencing consumer
preference.
SEA Online
Used Car Market:
Increasing internet and
smartphone penetration in the Southeast Asian countries has resulted in large
number of consumers preferring to buy and sell cars through online auto
classifieds and social media, due to which the used car market is getting more
organized and gaining more traction. These platforms are taking advantage of
digitalization to advertise their listings, making them easier to access and
more visually attractive with an enormous number of reviews, photos and videos.
Their aim is to harness the untapped potential of the industry as currently,
there exists a single digit online penetration for used car in the Southeast
Asia region.
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SEA
Ancillary Services Market:
Ancillary Services includes, Auto
Finance, Car warranty, Motor Insurance Premium and Aftermarket Service. Banking
institutions, NBFCs and captive companies are the major entities offering
financing facilities to customers willing to purchase used car.
The automotive aftermarket
service industry recorded a positive CAGR of ~% on the basis of revenue in
between 2015 and 2021. Surging vehicle parcs coupled with fast-growing
middle-class population willing to avail private transportation medium due to
increased awareness on health and hygiene followed by the advent of COVID-19
are some of the major determinants for the growth of automotive sector in SEA
region.
What is the
Future of SEA Used car market?
The used car industry in SEA is
expected to grow in the future at a double digit CAGR over the forecast period
2021 to 2026F. The industry is expected to establish strong demand arising due
to preference of personal vehicles over public transportation as the after
effects of the pandemic. 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, analysing consumer
behavioural insights to show relevant ads according to interests & more.
Key Topics
Covered in the Report
- Executive Summary
- SEA Used Car Market Future Outlook
- Ecosystem of Major Entities in SEA Used Car
Market
- Overview and Genesis of the Used Car Market in
SEA Region
- Value Chain Model for Used Car Industry
- Issues and Challenges
- Overall Used Car Market Size and Segmentation
- Online Used Car Market Size and Segmentation
- Ancillary Service Market Analysis
- SWOT Analysis
- Customer Decision Making Parameters for Buying
Used Car
- Covid-19 Impact on SEA Used Car Market
- Comparison of SEA Used Car Market with USA and
China Market
- Competitive Landscape & Cross Comparison
of Major Players
- Company Profiles
- Individual Country Wise Used Car Analysis for
Indonesia, Thailand, Malaysia, Philippines, Singapore and Vietnam
- Future Projections
- Analyst Recommendations
- Research Methodology
Related
Reports
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Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
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