Future Outlook of Malaysia Used Car Market and Growth Rate: Ken Research
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 1.38:1.
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 2015-2021 on the basis of revenue. Sales for used cars were recorded
at ~ units in Malaysia during 2021.
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 2021. Sedans and Hatchback
are the most popular car models preferred by Malaysians, and a vast majority of
them lie in this price range.
Click here for sample repot: -
https://www.kenresearch.com/sample-report.php?Frmdetails=NTUwNTY3
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
C2b Used Car
Market Size
C2B Platforms for
used cars make the car selling process more convenient. Malaysia C2B used car
market size was valued at MYR ~Bn in 2021; recording a contraction of ~% CAGR
in between 2016 and 2021 on the basis of GMV.
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.
On a C2B Platform, the sellers can upload a quick listing of their vehicles, receive
offers from interesting buyers and accept the most feasible option to sell it
online. The market displays a sales volume of ~ units through C2B channel in
2021 with a CAGR of ~% during the period 2016-2021.
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
For
More Information on the research report, refer to below link: –
Malaysia
Used Car Market Growth Rate
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
+91-9015378249
