The report titled “Indonesia Used Car Market Outlook to 2023 - Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales“ provides a comprehensive analysis of used car/ pre-owned car services in Indonesia. The report focuses on the overall market size, segmentation by market structure (unorganized and organized sector), by unorganized distribution channel of (C2C and local dealership) and organized distribution channel (multi-brand dealership, repossessed cars, OEM Certified outlet), by unorganized and organized lead generation source (dealership walking, online auto portal), by type of used cars (MPV/Sedan, Economy/Hatchback, SUV), sales by major cities (Jakarta, Surabaya, Medan, Bandung and others), by type of used passenger cars (Private/Commercial), by kilometers are driven, by year of manufacture, by fuel type (gasoline, diesel and others). The report also covers the overall competitive landscape; government role and regulations, issues and challenges, trends and developments. The report concludes with market projections for the future, highlighting the major opportunities and cautions.
Indonesia Used Car Market Overview and Size
The used car industry in Indonesia had a lack of transparency and customer assurance which made used car buying risky in the country. Previously, people used to prefer buying used cars in Indonesia on the basis of suggestions given by friends and families which were not up to the mark in terms of quality check. The market was dominated with numerous unorganized used car dealers (consisting of local dealerships, local vendors and others) that provided second-hand cars at cheaper rates and it benefited the price-sensitive customers within Indonesia. The biggest evolution can be seen via the organized structure which constitutes multi-brand organized showrooms and OEM certified dealerships that provide numerous used car brands which are subsidiaries of international automobile brands? Growing smartphone and internet penetration in Indonesia led to the emergence of online auto classified portals such as OLX, Mobil123, Carmudi, Mobil88, Oto.com, BeliMobilGue and others which have created a trading platform where both potential buyers and sellers can visit and indulge in a C2C transaction from the convenience of their home. The market has attained speedy growth over a period of five years from 2013 to 2018. The demand for used cars has seen a constant rise over the past few years.
Indonesia Used Cars Market Segmentation
By Market Structure
In 2018 the sales volume through the unorganized sector is generated through individual sellers (C2C) and local dealerships who collectively contributed to a majority of the proportion in the overall used cars market.
By Distribution Channel
Unorganized- Due to higher discounts are given by the unorganized market, the majority of transactions conducted in the market are through C2C or local dealership channel. The local dealership channel controlled a major proportion of the total sales volume in the unorganized used car market during 2018. C2C trade-in had the remaining where potential buyers and sellers negotiate themselves without any involvement of a third party.
Organized- Within the organized space, multi-brand showrooms and OEM certified outlets took had a massive market share in terms of sales volume whereas, the remaining volume share was captured by the bank repossessed cars segment during the year 2018.
By Type of Used Car
MPVs and sedan have dominated the sale of used cars in Indonesia during 2018 due to an increase in demand for bigger cars because of growing family sizes in Indonesia. Economy and hatchback had the second highest market share followed by SUV.
By Major Cities
Jakarta dominated the sales of used cars in Indonesia because of the large population base and high disposable income. Surabaya had the second highest sales followed by Medan, Bandung and other small cities.
By Kilometers drove
Pre-owned cars are driven for a range of 50000-80000 km collectively dominated the Indonesian Used car market. Cars who have clocked around 50,000-80,000 km are highly affected in terms of checking mechanical conditions (car battery and others) of the vehicle, physical conditions (tires, paint, scratches as well as dents and others) causing wear and tear thus, reducing the total price of the vehicle.
Competitive Landscape in Indonesia Used Cars Market
Competition within Indonesia used cars market was observed to be highly fragmented with the presence of a large number of local dealerships, small mechanics and individual sellers, which collectively makes up the unorganized space. Majority of the used cars market in terms of sales volume was observed to be highly unorganized. On the other hand, the market constitutes of the organized players like Mobil88, Tunas, Andre Motors Auto2000, Sun star motors. There are OEM certified players too such as Toyota Trust, Autosafe, Mercedes Certified, BMW premium selection. The online lead generation happened through major online auto portals such as OLX, Carmudi, Mobil123, and others. Certification and authentication, brand, price, mileage and performance, engine quality/power and a total number of dealers are some of the critical parameters on the basis of which companies compete in the organized segment.
Indonesia Used Cars Market Future Outlook and Projections
It is anticipated that the used cars a market in Indonesia will continue to grow in the coming years as used vehicles are much cheaper to purchase than a new one. The used car industry in Indonesia is likely to witness vibrant growth in terms of sales volume in 2023E years owing to the introduction of new car variants along with the rising aspirations of low and middle-income consumers in the country. Stabilization of macro-economic variables and an overall improvement in the standard of living in low-income regions including Lampung, Denpasar, and Palembang is projected to boost sales in the used car market. The market is expected to be driven by higher sales of luxury cars and MPV’s due to the increasing brand consciousness coupled with the growth in a number of families.
Key Segments Covered:-
Market Structure
Unorganized Sector
Organized Sector
Distribution Channel
Unorganized (Local dealership, C2C)
Organized (Multi-brand dealership and OEM certified, Repossessed cars)
Unorganized and Organized lead generation source
Dealership Walk-ins
Online Auto Portal
Type of used cars
MPVs/Sedan
Economy/Hatchback
SUV
Sales by major cities
Jakarta
Surabaya
Medan
Bandung
Others
Type of Used passenger cars
Private
Commercial
Kilometers driven
>5000
5000-20000
20000-50000
50000-80000
80000-120000
120000 and above
Year of manufacture
Before 2000
2000-2002
2003-2005
2006-2008
2009-2012
2013-2018
Fuel Type
Gasoline
Diesel
Others (Hybrid, electrical, CNG)
Key Target Audience
Automobile Companies
OEM certified companies
Online Classifieds
Multi Brand Organized Car Dealers
Time Period Captured in the Report:-
Historical Period - 2013-2018
Forecast Period - 2019-2023
Companies Covered:-
Multi-brand Dealerships (Mobil88, Andre Motors, Auto2000, Tunas, Sun Star motors and others)
OEM Certified Dealerships (Toyota Trust, Hyundai Autosafe, Mercedes certified, and BMW premium select)
Online auto portals (OLX, Mobil123, Carmudi, Mobil88, OTO others)
Key Topics Covered in the Report:-
Executive Summary
Research Methodology
Indonesia Used Cars Market Overview and Genesis
Business Models Prevalent in Indonesia Used Cars Market
Indonesia Used Car Market Size, 2013-2018
Ownership Transfer Registration for Cars in Indonesia
Indonesia Used Car Market Segmentation
Customer Profile in Indonesia Used Car Industry
Decision Making Process for Buying and Selling Used Cars in Indonesia
Government Regulation in Indonesia Used Car Market
Trends and Developments in Indonesia Used Car Market
Issues and Challenges in Indonesia Used Car Market
Comparative Landscape in Indonesia Used Cars Market
Indonesia Used Car Market Future Outlook and Projections, 2019-2023
Analyst Recommendations for Indonesia Used Cars Market
Macroeconomic Factors Affecting Indonesia Used Cars Market, 2013-2023
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