Policy Street and CARSOME Revolutionize Car Insurance with CARSOME Care+

Through this partnership, drivers are not only safeguarding their vehicles but also gaining enhanced financial security and peace of mind in uncertain times.

STORYLINE

1. Innovative Collaboration: Policy Street and CARSOME introduce CARSOME Care+, redefining car insurance with unique unemployment protection.
2. Addressing the Gap: Malaysia's underinsured population of 90% targeted with personal accident coverage up to RM10,000.
3. Comprehensive Benefits: CARSOME Care+ offers holistic advantages ranging from weekly hospitalization benefits to theft protection and more.
4. Empowerment and Assurance: Partnership empowers drivers with unprecedented coverage, emphasizing quality guarantee and a seamless car buying experience.
5. As per Ken Research, as Policy Street and CARSOME join hands to introduce CARSOME Care+, the landscape of car insurance in Malaysia is poised for transformation

In a groundbreaking collaboration, Policy Street, an innovative insurance solutions provider, and CARSOME, Southeast Asia's largest integrated car e-commerce platform, have come together to launch a transformative product – CARSOME Care+. This unique offering redefines car insurance by introducing a Car Personal Accident Coverage tailored for Malaysians.

1. Unprecedented Protection

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CARSOME Care+ is taking car insurance to a new-heights by including protection against unemployment. This innovative feature ensures that policyholders continue to make their car loan payments even if they have lost their job. This component of financial security is aimed at vanishing the concerns of car owners during times of unexpected job loss, providing them with a safety net that takes care of their financial burdens.

2. Closing the Protection Gap

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In Malaysia, approximately 30 Mn people, constituting around 90% of the population, are either underinsured or completely uninsured. This partnership between Policy Street and CARSOME is targeted at addressing this significant gap in insurance coverage.

 CARSOME Care+ offers personal accident coverage of up to RM10,000, ensuring that policyholders and their families are financially protected in case of any emergency such as accidental death or even permanent disablement.

3. Holistic Benefits

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CARSOME Care+ goes beyond the traditional systems of car insurance policies. In addition to its innovative unemployment protection, the policy also provides a range of holistic benefits which includes weekly hospitalization benefits, protection for smart keys, coverage for personal belongings theft from the car, and a travel allowance designed to assist with children's school and tuition transportation expenses. This comprehensive approach to insurance underlines CARSOME's commitment to offering a hassle-free & seamless car buying experience.

4. Empowering Drivers

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Policy Street and CARSOME's partnership aims to empower Malaysian drivers with robust insurance coverage that aligns with their needs. Yen Ming Lee, CEO of Policy Street, highlights the importance of protecting drivers on the road, not just their vehicles. Eric Cheng, CEO of CARSOME, highlights the fact that the collaboration combines quality guarantee and unique coverage to create a seamless and worry-free car purchasing journey.

Conclusion

As Policy Street and CARSOME join hands to introduce CARSOME Care+, the landscape of car insurance in Malaysia is poised for transformation. Through this partnership, drivers are not only safeguarding their vehicles but also gaining enhanced financial security and peace of mind in uncertain times.

Revving Up: Malaysia's Used Car Market Accelerates Amid Economic Caution

 With cautious sentiment driven by inflation and interest rate hikes, the growth in used car sales is projected to continue.

• Rising Demand: Used car sales to surge in 2023 amid cautious economic outlook.
• Affordable Option: Customers opt for pre-owned vehicles due to inflation and interest rate concerns.
• Online Platforms: Online platforms expedite used car buying and selling process.
• Growth Projection: Used car sales projected to grow 10% YoY in 2023.1.
• As per Ken Research, as Malaysia's used car market gains momentum in 2023, economic uncertainties prompt customers to gravitate towards more affordable pre-owned vehicles.

1. Resilient Used Car Sales Surge in 2023 Amid Economic Caution

Malaysia Used Car Market Trends

The used car market in Malaysia has witnessed a resurgence in 2023, driven by economic caution and consumer preference for affordable pre-owned vehicles. Datuk Tony Khor, President of the Federation of Motor and Credit Companies Association of Malaysia (FMCCAM), underlines that factor such as inflation, interest rate hikes, and slower economic growth will influence consumer sentiment this year in a big way.

When economic conditions become uncertain, there is a tendency for customers to opt for cost-effective pre-owned vehicles, contributing to the growth of the used car segment.

2. Digital Platforms and Trade-ins Shape the Market Dynamics

Malaysia Used Car Market Scenario

Khor highlighted the vital role of online platforms in reshaping the used car market landscape. These digital platforms are expected to expedite and simplify the process of buying and selling used cars, providing both buyers and sellers with a convenient and efficient way to conduct transactions.

The trend of trading in old vehicles when purchasing new ones has gained traction. With around 65% of new car buyers opting for trade-ins, the supply of used cars continues to be supported by the constant influx of new vehicle sales.

3. Steady Industry Performance and Positive Outlook

Malaysia Pre-Owned Car Market Future Scenario

Recent data from the Malaysian Automotive Association (MAA) reveals a strong performance in the automotive sector. Sales of new vehicles witnessed a remarkable 39% surge to 62,649 units in the last month, underlining the market's resilience.

The year-to-date sales volume for February highlights steady growth, standing at 112,128 units compared to the same period in the previous year. Passenger vehicle sales reached 55,555 units in February 2023, indicating a positive trend.

 Further boosting the market, analysts project strong sales growth in March 2023, with Japanese car manufacturers capitalizing on fiscal year-end effects and the extended sales and service tax (SST) exemption. As the industry remains well-positioned, strong orders, steady input costs, and supply chain stabilization are set to propel the sector's growth and earnings throughout the year.

Conclusion

According to Ken Research, as Malaysia's used car market gains momentum in 2023, economic uncertainties prompt customers to gravitate towards more affordable pre-owned vehicles. With cautious sentiment driven by inflation and interest rate hikes, the growth in used car sales is projected to continue, supported by online platforms and the preference for personal transportation.

Navigating Growth and Resilience: Malaysia's Used Car Market Trends and Strategies

 Storyline

• Middle-Class Expansion: Rising middle-class income drives increased car ownership and demand for pre-owned vehicles.
• Digital Surge: Growing prevalence of online used car platforms boosts sales and enhances accessibility.
• Strategic Pandemic Support: Moratorium on car loans sustains the used car industry during the pandemic.
• Future Growth: Anticipated 8.5% (2027) CAGR as Malaysia's middle class expands and digital trends persist.
• As per Ken Research, the Malaysia Used Car Market has undergone a robust growth, facilitated by the expanding vehicle ownership among the middle class, improved availability of financing options, and the flourishing trade-in culture

1. Driving Growth Factors in Malaysia's Thriving Used Car Market

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The Malaysia Used Car Market has experienced growth driven by factors like expanding vehicle ownership within the middle class, increased availability of financing options, and a growing trade-in culture. As the economy flourishes and the middle-class strata grows, more Malaysians are embracing car ownership, with middle-income earners of MYR 4,851 to MYR 10,970 per month investing in pre-owned vehicles. Moreover, the market is taking advantage of improved financing options, as banks and financial institutions offer specialized loans and flexible schemes tailored for used cars, enhancing accessibility for potential buyers.

2. Kuala Lumpur and Selangor: Driving Force Behind Malaysia's Used Car Demand

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Kuala Lumpur and Selangor are the leaders in the road traffic landscape in Malaysia, resulting in a robust demand for used cars. The Klang Valley, encompassing these regions, holds a major share of the country's used car sales, exceeding 60%. This dominance is due to the urban population's high disposable income, the region's economic importance, and a concentration of dealerships and used car exchanges. Moreover, key commercial centers like Kuala Lumpur, Selangor, Melaka, and Johor, along with major tourism hubs like Kuala Lumpur, Penang, and Sarawak, contribute to increased road traffic and further fuel the demand for pre-owned vehicles.

3. Strategic Moratorium Boosts Sustainability of Malaysia's Used Car Industry Amid Pandemic

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The implementation of a moratorium on car loans during the pandemic has played a strategic role in enhancing the sustainability of the used car business in Malaysia. This measure, announced under the National Economic Recovery Plan, also known as Penjana, has provided critical support to used car dealerships and financial institutions. These entities provide streamlined loan applications, rapid approvals, and comprehensive assistance, ensuring a smooth financing experience for customers. Moreover, most banks in Malaysia extend financing of up to 90% for Malaysian citizens and 70% for foreigners looking to purchase used cars. This intervention has effectively provided benefit in maintaining the used car industry's stability throughout the pandemic.

4. Market Set for 8.5% CAGR Amidst Middle-Class Expansion and Digital Surge

The Malaysia Used Car Market is anticipated to offer a robust growth rate with a CAGR of 8.5% from 2022 to 2027. This expansion is due to the increasing middle-class segment and the growing prevalence of online used car platforms. The middle-class population, accounting for 37.2% of total household income in 2019, is projected to further expand, showcasing a heightened demand for pre-owned vehicles. The increase in online auto-classified platforms and consumer preference for digital avenues are expected to bolster the used car sales growth. Moreover, FMCCAM's strategic initiatives, including the introduction of a new online marketplace and collaboration with used car financiers from Japan, China, and Taiwan, are expected to contribute to the increasing sales of used cars in the country.

Conclusion

As per Ken Research, the Malaysia Used Car Market has undergone a robust growth, facilitated by the expanding vehicle ownership among the middle class, improved availability of financing options, and the flourishing trade-in culture. As the middle-income group's economic capacity widens, an increasing number of Malaysians are going for car ownership, with an increased preference for pre-owned vehicles.

The market's accessibility has been further enhanced by the presence of diverse financing options offered by banks and financial institutions, catering specifically to used car purchases. Moreover, Kuala Lumpur and Selangor stand as major drivers of the market due to their significant road traffic contribution, showcasing the region's economic importance and urban population's disposable income. As the market evolves, strategies such as the introduction of extended warranty programs, OEM-certified car labs, and the rise of used EVs are shaping the landscape and broadening opportunities.

Moreover, the government's support, including the moratorium on car loans, has bolstered the market's resilience during the pandemic, ensuring the continued vibrancy of the used car industry in Malaysia.

COVID-19 Impact on Used Car Industry in Malaysia: Ken Research

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The report titled “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” provides a comprehensive analysis on the status of the used car industry in Malaysia. The report covers various aspects including volume of used cars & market size, production scenario of new cars in the country, target audience, growth facilitators, issues & challenges faced by the industry, and other aspects. Detailing on various players in operating as Multi-Brand dealers, OEM based dealers, Auction based players, C2B players, and classified marketplace players have been carried out.  Malaysia Used Car Industry report concludes with projections for future of the industry including forecasted sales revenue and volume by 2025, market segmentations, Covid-19 impact and analysts’ take on the future.

Malaysia Used Car Market Overview and Size:

Malaysia Used Car sector is in the late growth phase, having grown at a CAGR of ~1% during 2015-2020. 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 drop in use of public transport due to the pandemic and emergence of online players which have made the overall process of selling and buying used cars smooth, thus boosting sales.

Malaysia Used Car Market Segmentations

By Market Structure (Unorganized, and Organized): The used car market in Malaysia is dominated by unorganized dealers occupying market share of over 50% with significant presence in Tier-2 cities and rural areas. While the organized channel is popular in urban cities and provinces, unorganized channels are predominant across rural areas outside the cities.

By Sales channel (C2C, B2C/OEM, and Auction): B2C/OEM Organized market dominated the used car industry in Malaysia in 2020, both on the basis of value and volume. Majority of the used cars are either sold through the B2C dealers or OEM based captive dealers owing to availability of several value added services. The presence of major OEM is concentrated in the Kuala Lumpur, Selengor and other Tier-1 cities; however, Multi-brand dealers are present throughout the country, both online and offline.

By Source of Lead generation (Online, Dealership walk-ins): 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 offers a large variety of used vehicles on a single click and allows person to compare different vehicles at the same time. Moreover, large stock of used vehicles under one roof is time saving and considered as a convenient method.

By Type of Car: Sedans and hatchbacks are the most popular car types in Malaysia cumulatively accounting for ~65% of the used car sales. This is majorly due to the fact that it has 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 32% of sale of used cars by volume. Cars of Perodua, Proton, Toyota, Honda, and Nissan are the most preferred due to strong brand value, reliability, longer life span, and higher retention value of the used vehicles.

By Region: High urban population and disposable income in Kuala Lumpur & Selengor has led to generation of ~60% 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.

By Ownership Period: Since the finance for used and new car is readily available in the country the ownership period of the cars has been decreasing. Majority of the market share is acquired by cars having age of 4-6 years.

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 Fuel: Cars running on petrol occupy a significant proportion of the Malaysian used car market in 2020. The adoption of electric vehicles is at a very nascent stage accounting for only 0.01% of the market currently.

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 such as Mudah.my, Motor Trader, Carlist.my, WeMotor and others 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. Players such as Carsome, MyTukar are a complete transaction marketplace that provideconsumers 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.These transaction marketplace platforms are expected to demonstrate a ~25-30% 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.

Competitive Landscape of 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 a share of majority share in the sales volume of used cars during 2020. In the OEM segment, local brands Perodua and Proton are the most popular. Price, age and residual value of the vehicle, brand value, maintenance required are some of the most important factors impacting the preference of consumer. Almost every brand offers services such as 24/7 roadside assistance, free inspection, easy exchange & more under their certified pre-owned program to attract more number of customers.

Malaysia Used Car Future Outlook & 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 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

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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
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