Philippines Used Car Market is Driven by Growing Online Auto Portals, Increase in Taxes for New Vehicles and Emergence of Certified Pre-Owned Cars: Ken Research

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Philippines Used Car Market: - “The key factors driving growth in the Philippines used car market is digitalization via online auto portals, classified pages, and social media advertisements. The banks repossessed car auctions, certified cars supplied by Direct Dealership Sales Agents (DDSA) and refurbished cars sold by multi-brand dealers have also significantly contributed to the growth of the Philippines used car market”.

The report titled “Philippines Used Car Market Outlook to 2023- by Market Structure (Organized and Unorganized Market), by Origin of Sale (Direct Dealership Sales Agent, Repossessed Units Sold By Banks and Multi-Brand Dealers), By Sales Channel (Online and Dealership Walk-ins), by Average Vehicle Replacement Period and by Major Car Manufacturer Brands” Ken Research suggests a four-year CAGR of close to 8.0% on the basis of used car sales volume for the time period 2014-2018.

Market Overview: Philippines used car market has been identified at a growth stage with a growing appetite for certified pre-owned cars sold by Direct Dealership Sales Agents (DDSA).The used car volumes in the Philippines have been growing at a four-year CAGR of 8.0% between 2014- 2018. The overall competition stage of the market is fragmented in nature with the unorganized market dominating the market in terms of used car sales volumes. In the organized market, the market is fairly concentrated as the DDSA and Repossessed cars auctioned by the banks are limited in number, however, the multi-brand dealers in the country are bit fragmented.

Value Added Services: The organized players in the market consisting of DDSA, repossessed car auctioneers and multi-brand dealers have started providing certification on the vehicle because of which the repairs or any manufacturing faults can be handled at the service center free of charge due to which the consumer is all the more motivated to buy a certified/ approved used vehicles nowadays. The registration certification, hypothecation, and other documentation is generally taken care of by the organized players.  The above reasons have lured more and more customers to buy used cars and will continue to do the same in the future.

Government Regulations: The Philippines government’s goal is to attain a 70:30 CKD to CBU market split by 2022, achieving a 150% increase in nationwide capacity, and full utilization by that date. As of 2014, the ratio of CKD to CBU vehicles stood at 32:68 in the country. The current administration also implemented a landmark tax reform law in late 2017, called the Tax Reform for Acceleration and Inclusion, or TRAIN law, which imposed additional excise taxes on a number of goods, including automobiles, beginning in 2018. Prior rates of 2% to 60% have changed to between 4% and 50%, which severely affected the pricing on the most affordable and most bought models, which might have acted as a favorable factor for the used car market in the country.

Key Segments Covered:-

Philippines Used Car Market Overview and Size

By Type of Market Structure

Organized Market

Unorganized Market

By Type of Sales Origin (Organised Market)

Direct Dealership Sales Agent

Repossessed Units Sold By Banks

Multi Brand Dealers

By Type of Sales Channel (Organised Market)

Online Platforms

Dealership Walk-ins

By Average Ticket Size of Used Vehicle

By Average Vehicle Replacement Period

By Type of Vehicle Manufacturer/Brand

Japanese Brands

German Brands

American Brands

Korean Brands

Other European Brands

British Brands

Others

Key Target Audience:-

Potential Direct Dealership Sales Agents

Existing Multi-Brand Dealerships

Banks & Subsidiaries

Captive Finance Companies

Non-Banking Financial Institutions

Cab Aggregators and Car Rental Companies

Government Organizations

Online Auto Portals

Classified Pages

Investors and VC Firms

Industry Associations

Time Period Captured in the Report:-

Financial Year 2014-2018: Historical Period

Financial Year 2019-2023: Future Forecast

Companies Cited in the Report:-

Brand

Toyota

Nissan

Hyundai

Honda

Mitsubishi

Ford

DDSA

Toyota Certified

Honda Philippines

Nissan Intelligent Choice

Hyundai Philippines

Mitsubishi Certified

Banks

BDO

PS Bank

BPI

East-West Bank

China Bank

RCBC

May Bank

Sterling Bank

Security Bank

Classified Pages/ Online Auto Portal

Phil Kotse.com

OLX

Auto Deal.com

CarMudi Philippines

Key Topics Covered in the Report:-

Philippines Online Used Car Financing Market

Philippines Used Car Market

Philippines Used Cars Market Future Outlook

Philippines Car Industry

Philippines Car Market

Philippines Automotive Aftermarket Industry

Philippines Car Dealer Market

Used Car Sales Market Philippines

Philippines Repossessed Units Sold By Banks

2nd hand Cars for Sale Philippines

Demand for Old Cars in Philippines

Car Auction Market Philippines

Used Car Listing in Philippines

Online Marketplace Used Cars Philippines

Online Used Cars Market Philippines

For More Information On The Research Report, Refer To Below Link:-

Philippines Used Car Industry

Related Reports by Ken Research:-

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

Russia Used Car Market Outlook to 2022 - by Type of Car (Sedans, Crossovers and SUVs, Hatchbacks and Others include Micro Vans and MPVs) by Car Age, by Distribution Channels (Dealers and Online)

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