Convenience offered by the online platforms to both buyers and sellers has led to increase in the Used Car Sales in Malaysia: Ken Research

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Rising Internet Penetration: Internet users in Malaysia stands at 29.55 million as of January 2022 while Internet penetration in Malaysia stood at ~89.6%. The used car dealers have been able to increase their footfall due to the rising Internet and Smartphone penetration in the country. Digital platforms provide many value-added services such as - instant finance, warranty extension, insurance, etc. which are attracting more customers to buy used cars.

Health Concerns from Using Public Transportation: Due to the Covid-19 Pandemic, people have become more conscious about health & hygiene due to which public transport and ride sharing are no longer considered to be a safe option as more & more people are concerned about health and risk for severe illness from the virus, and as a result, used car is a way of following social distance to fight the Covid-19 Pandemic. In addition to the same, with the decrease in purchasing power, new vehicles are not considered to be economical option which makes used car a perfect choice for customers with limited budget.

Evolution of complete transaction Marketplaces: A completely digital experience by Transactional marketplaces helps the customer to book test drive & buy used cars online. Ancillary services such as insurance, warranty, financing options & documentation support are also provided by these platforms.

Covid-19 Impact on the Used Car Sales: Due to Movement Control Order restrictions, the demand for used cars significantly diminished during the peak of Covid-19 pandemic. This was due to low supply and closure of OEM dealerships and local tents during lockdown which was further fueled by decrease in purchasing power which led to postponing of new and used car purchases.  However, as the lockdown restrictions were on ease, there was a significant growth in used car sales as people started to prefer personal vehicles over shared transport. Other factors increasing the sales were favorable tax policies and sale of vehicles by people with multiple car ownership. During the initial months of the year 2020, the demand for used cars in the country remained low, however there was increase in demand in the second half of the year post ease in the lockdown. To drive sales and to increase customer football, the manufacturers are expected to shift focus towards digital medium.

Analysts at Ken Research in their latest publication “Malaysia Used Car Market Outlook To 2026F (Third Edition) – Demand for Used Cars Increased Due to Shift in User preference towards Personal Mobility, induced by Covid-19” observed that post pandemic, Malaysia is in a late growth phase in the used car market in South East Asia and is slowly recovering from the economic crisis. The increasing credit availability in the country along with car loan moratoriums and other incentives under Penjana is driving the growth of the industry. The industry is expected to demonstrate strong growth in the future led by growth of online used car platforms that provide convenience to both buyers and sellers and makes the entire process smoother. The Malaysia Used Car Market is expected to grow at a CAGR of 9.7% on the basis of GMV over the forecast period 2021-2026F.

Click here for sample repot: - https://www.kenresearch.com/sample-report.php?Frmdetails=NTUwNTY3

Key Segments Covered: -

By Market Structure

Organized

Unorganized

By Sales Channel

B2C/OEM organized

C2C

Auction

By Source of Lead generation

Online

Dealership walk-ins

By Car Segment

Sedan

Hatchback

SUV

MPV

Pickup trucks

Others (convertibles, coupe, sports vehicles, etc.)

By Price

Less than MYR 30,000

MYR 30,000-50,000

MYR 50,000-70,000

MYR 70,000-90,000

More than 90,000

By Brand

Perodua

Proton

Honda

Toyota

Nissan

Others (Mitsubishi, Mazda, Mercedes, Audi, etc)

By Region

Kuala Lumpur

Selengor

Johor

Penang

Perak

Others

By Ownership period

Less than 2 years

2-4 years

4-6 years

6-8 years

More than 8 years

By Mileage

Less than 20,000

20,000-50,000

50,000-80,000

80,000-120,000

Above 120,000

By Fuel

Petrol

Diesel

Hybrid

Electric

Companies Covered

OEM Dealerships

Perodua Pre-owned

Proton Certified Pre-owned

Toyota Topmark

Mazda Certified Pre-owned

BMW Premium Selection

Mercedes Benz Certified Pre-owned

Online Portals – C2B platforms

Carsome

MyTukar

MyMotor

Online Portals – Online Auto Classified Platforms

Mudah.my

Motor Trader

Carlist.my

WeMotor

Motor Trader

Autocari

Oto.my

B2B Auction players

G-Mart

MUV

NG Chan Mau & Company

Pickles Auction

Key Target Audience

Used Car Companies

OEMs

Online Used Car Portals

Auction players

Used Car Financing Companies

Government Bodies

Investors & Venture Capital Firms

Used Car Dealerships

Used Car Distributors Auction Houses

Used Car Associations

Time Period Captured in the Report: -

Historical Period – 2015-2021

Forecast Period – 2021-2026F

Key Topics Covered in the Report: -

Executive Summary

Research Methodology

Malaysia Used Car Market Overview

Malaysia Used Car Market Size, 2015-2020

Malaysia Used Car Market Segmentation, 2020

Growth Drivers in Malaysia Used Car Market

Issues and Challenges in Malaysia Used Car Market

Regulatory Framework

Ecosystem and Value Chain of Used Car Industry in Malaysia

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

Snapshot on C2B and online classified market

Snapshot on Auction Market

Future Market Size and Segmentations, 2021-2025F

Covid-19 Impact on the Industry & the way forward

Analysts’ Recommendations

Related Reports by Ken Research: –

Indonesia Used Car Market Outlook to 2025

Saudi Arabia Used Car Market Outlook to 2025

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

LinkedIn | Instagram | Facebook | Twitter | YouTube

Demand For Used Cars in Malaysia Market: Ken Research

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How Is The Malaysia Used Car Market Positioned?

Overview: The Used car market in Malaysia is quite fragmented amongst the unorganized players in the industry. The used to new car ratio has been increasing over time and is currently at 0.8:1.  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 revenue. Other major drivers include increased internet and smartphone penetration and emergence of online players which have made the overall process of selling and buying used cars smooth, thus boosting sales.

The buying decision of the customers is influenced by key parameters such as Price, Model and Brand value. Home grown brands Proton & Perodua account for majority of the market share.

Market: Market for used car in Malaysia has enhanced by a CAGR of ~% over the period 2015-2020 on the basis of revenue. Sales for used cars were recorded at ~ units in Malaysia during 2020.

Increasing demand for quality cars, warranty packages, post-sale services, easy financing are the main reasons behind positive growth in the sales of OEMs dealerships. However, independent dealers dominate the market as they offer cheaper price as compared to OEMs and Multi-brand Showrooms.

The demand for used cars decreased during the peak of pandemic on account of MCO restrictions. This was due to low supply and closure of OEM dealerships and Local Tents during lockdown. However, as the country witnessed easing of lockdown restrictions, there was a significant traction in used car sales fueled by changing consumer preferences. Going forward, the manufacturers are expected to shift focus towards digital medium in order to drive sales and increase customer footfall.

Malaysia Used Car Market Segmentation

By Sales channel: B2C/OEM dominates the market both in terms of both volume and value due to the provision of value-added services and after sales services. C2C transactions occurring between friends and family are comparatively very less.

By Source of lead generation:

In Malaysia, Online platform is the most preferred method for lead generation for organized players as it eliminates middlemen and the commission margin associated with them. It also offers a display of large variety of used vehicles on a single click and allows person to compare different vehicles at the same time.

By Type of Car: Sedans are the most popular car types in Malaysia. This is majorly due to the fact that they have both commercial and personal utility, mostly finding applications by young professionals, store/business heads, on- demand services like taxi and rental services

By Price: The price range of MYR 30,000-50,000 accounted for highest percentage share of used cars in Malaysia in 2020.  Sedans and Hatchback are the most popular car models preferred by Malaysians, and a vast majority of them lie in this price range.

By Brand: Perodua is the market leader in Malaysia accounting for greater than 30% of sale of used cars by volume. Cars of Perodua, Proton, Toyota, Honda, Nissan are the most preferred due to strong brand value, reliability, longer life span, and higher retention value of the used vehicles

By Kilometers Driven: Cars with running of 80,000- 120,000 kilometers dominate the market. Vehicles used for commercial purposes such as taxis, rentals travel in excess of 40,000 kms every year.

By Ownership Period: Cars with ownership period of 5-8 years have the highest market share owing to high durability of the pickup trucks in the country. Since these vehicles have sturdy engines, the owners tend to keep them for long time and use it for business purposes.

By Region: High urban population and disposable income in Kuala Lumpur & Selengor has led to generation of ~% of the used car sales over these regions. Due to geographical factors, East Malaysia has a high demand on pickup trucks. East Malaysian cities such as Sabah, Kuching have sales generated majorly by pickup trucks that provide better power and maneuverability, especially for off road commercial applications such as logging, construction, and plantation.

Snapshot On Online Used Car Landscape

The online used car market has been emerging with the rise in the popularity of e-commerce platforms in the country. The growth of online advertising, which has fueled the rise of online classified platforms that have revolutionized the way in which pre-owned vehicles have been sold in the country. With the growth in the number of vehicles sold online, these players not only witnessed a sharp growth in marketplace revenue but also from other sources including advertisements, subscriptions and other value-added services. Some of the largest players in the space follow a complete transaction marketplace model that provide consumers a completely digital experience and enable them to book test drive & buy used cars online. These platforms also provide ancillary services such as insurance, warranty, financing options & documentation support. They are expected to demonstrate a ~% CAGR till 2025 on account of growth in the online segment due to rapid internet penetration and increase in transaction volume due to preference of owning personal vehicles, mainly due to Covid-19.

Competition Scenario In Malaysia Used Car Market

There exists Intense competition in the highly fragmented market with various OEM certified, brand authorized dealerships, multi-brand outlets & independent (standalone as well as clustered dealers) operating in the industry. Used Car Market in Malaysia has been dominated by B2C and OEM Dealerships which has captured majority share in the sales volume of used cars during 2020. Price, age, residual value of the vehicle, brand value, maintenance required are some of the most important factors impacting the preference of consumer. The players compete on parameters such as Product Portfolio, Distribution Network, Pricing, Discounts, and Geographical Location, Value Added Services, Collaborations & Partnerships and After Sales Service.

Malaysia Used Car Market Future Outlook and Projections

The used car industry is expected to demonstrate strong demand arising due to preference of personal vehicles over public transportation, mainly on account of Covid-19 pandemic. The strong pent-up demand in used car sales as witnessed in 2021 will drop slightly in 2022 on account of reduced govt. incentives and the volume will normalize.  The sales of economical cars are also expected to increase over the forecast period. Use of advanced technologies such as AI to valuate car online by looking at the pictures only, 360-degree view of the interiors of the car, etc. to enhance digital experience of consumers. FMCCAM is planning to introduce new online marketplace and look for used car financiers from Japan, China and Taiwan so as to increase used car sales.

Key Segments Covered: –

• By Market Structure
• Organized
• Unorganized
• By Sales Channel
• B2C/OEM organized
• C2C
• Auction
• By Source of Lead generation
• Online
• Dealership walk-ins
• By Car Segment
• Sedan
• Hatchback
• SUV
• MPV
• Pickup trucks
• Others (convertibles, coupe, sports vehicles, etc)
• By Price
• Less than MYR 30,000
• MYR 30,000-50,000
• MYR 50,000-70,000
• MYR 70,000-90,000
• More than 90,000
• By Brand
• Perodua
• Proton
• Honda
• Toyota
• Nissan
• Others (Mitsubishi, Mazda, Mercedes, Audi, etc)
• By Region
• Kuala Lumpur
• Selengor
• Johor
• Penang
• Perak
• Others
• By Ownership period
• Less than 2 years
• 2-4 years
• 4-6 years
• 6-8 years
• More than 8 years
• By Mileage
• Less than 20,000
• 20,000-50,000
• 50,000-80,000
• 80,000-120,000
• Above 120,000
• By Fuel
• Petrol
• Diesel
• Hybrid
• Electric

Companies Covered: –

OEM Dealerships

• Perodua Pre-owned
• Proton Certified Pre-owned
• Toyota Topmark
• Mazda Certified Pre-owned
• BMW Premium Selection
• Mercedes Benz Certified Pre-owned

Online Portals – C2B platforms

• Carsome
• MyTukar
• MyMotor

Online Portals – Online Auto Classified Platforms

• my
• Motor Trader
• my
• WeMotor
• Motor Trader
• Autocari
• my

B2B Auction players

• G-Mart
• MUV
• NG Chan Mau & Company
• Pickles Auction

Key Target Audience

• Used Car Companies
• OEMs
• Online Used Car Portals
• Auction players
• Used Car Financing Companies
• Government Bodies
• Investors & Venture Capital Firms
• Used Car Dealerships
• Used Car Distributors Auction Houses
• Used Car Associations

Time Period Captured in the Report: -

• Historical Period– 2015-2020
• Forecast Period– 2021-2025

Key Topics Covered in the Report

• Executive Summary
• Research Methodology
• Malaysia Used Car Market Overview
• Malaysia Used Car Market Size, 2015-2020
• Malaysia Used Car Market Segmentation, 2020
• Growth Drivers in Malaysia Used Car Market
• Issues and Challenges in Malaysia Used Car Market
• Regulatory Framework
• Ecosystem and Value Chain of Used Car Industry in Malaysia
• 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
• Snapshot on C2B and online classified market
• Snapshot on Auction Market
• Future Market Size and Segmentations, 2021-2025F
• Covid-19 Impact on the Industry & the way forward
• Analysts’ Recommendations

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

Malaysia Used Car Market Sales Revenue Growth

Related Reports by Ken Research: –

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)”

Saudi Arabia Used Car Market Outlook To 2025- By Market Structure (Organized & Unorganized), By Type Of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-Ups And Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford And Others), By Type Of Sourcing, By Age Of Vehicle (Less Than 1 Year, 1-3 Years, 3-5 Years & More Than 5 Years), By Kilometers Driven (Less Than 50,000 Km, 50,000-80,000 Km, 80,000-120,000 Km & More Than 120,000 Km) And By Region (Northern, Southern, Central, Eastern And Western)”

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

Malaysia Used Vehicle Market will be driven by Increasing Number of Inspection Checks performed before Selling a Used Vehicle coupled with Strong presence of Online Platforms: Ken Research

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“Introduction of government policies (ELV and EEV) coupled with growing customer confidence and user convenience has driven the Malaysia Used Vehicle Market”

Increasing Number of Inspection Checks: The growing number of inspection checks performed by a dealer before keeping a used car in stock has built the customer confidence with respect to the used vehicle they are looking forward purchase. The dealership outlets have started focusing on providing inspection reports at a price which is affordable by the buyer. Valuation services for used car have helped the seller in computing the resale price at which a used vehicle can be sold to the right buyer and at the right price. It has also helped the seller in deciding upon the negotiation margin in the valuation price of the vehicle.

Increasing Replacement Rate: The replacement rate of used vehicle in Malaysia is growing over the years largely due to the high resale value a seller gets on replacing a vehicle between 3-5 years of vehicle age. The dealership outlets keep replacing the cars with the fast moving models so as to ensure higher margins on the sale of such vehicles. The replacement rate is also increasing (higher replacement frequency) with respect to the government initiatives that are promoting to dispose of a vehicle before a certain specified age.

Strong Presence of Online Platforms: The online platforms has provided high user convenience to the buyers who are looking forward to purchase a vehicle as it provides the detailed description of all the listed used vehicles. The detailed description of a used vehicle has helped the buyer to make a cross comparison of the vehicle on the basis of factors such as model, price, mileage, body type and brand.

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)” by Ken Research suggested that the Malaysia Used Vehicle Market has been increasing due to increasing urban population and high car ownership ratio coupled with faster car replacement period and introduction of government policies such as EEV and ELV. The market is expected to register a positive CAGR of 2.8% in terms of sales volume during the forecast period 2018-2025E.

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

For More Information on The Research Report, refer to below link:-

Malaysia Used Vehicle Market

Related Reports by Ken Research:-

China Used Vehicle Market Outlook to 2022 – by Type of Vehicle (Sedans, SUVs, Micro Vans, MPVs, Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low Speed Trucks), by Vehicle Age, by Distribution Channels, by Region, by Price of Vehicle

Indonesia Used Car Market Outlook to 2023 – Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales

UAE Used Car and Auto Classified Market Outlook to 2022 – By Revenue Streams (Commission, Paid Listings, Banner Advertisement), By Export and Domestic Sales

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249