Key Findings
One negative for used cars is the 7% VAT that’s added to the bill if the
customer buys from a showroom or used car dealer, or use a loan to finance the
purchase.
Consumers are shifting away from traditional methods & increasing
using online platforms for their used car buying/selling journey. Many
start-ups and auto portals present in Southeast Asia are entering the Thailand
market or expanding their presence through mergers & acquisitions, seeing
the industry’s potential.
One Ton Pickups have gained a significant share in the used cars market
in the last five years as they are better aligned with the expectations of Thai
consumers. This is mainly due to the reason that they can be used as passenger
and commercial vehicle for transportation. Moreover, theses vehicle enjoy a tax
rebate if registered as commercial vehicles.
Growth of Digital Platforms: Increasing
internet and smart phone penetration in the country has resulted in large
number of consumers preferring to buy and sell cars through online auto
classifieds and social media. Auction Houses are also increasing their spending
on online advertising and generating leads through these platforms. Data from
Google Trends also indicates that the market has gained more attention.
Searching for major second-hand car brands on the Internet increased in the
past two years.
Unorganised dealers dominate the
Sales Volume in the Market: Independent dealers (Car Tents) dominate the market
due to large presence across the country. These dealers are also increasing
their online presence by listing their inventory on their own website/Facebook
account or platforms resulting in market growth. The players in the unorganized
sector give strong preference to less-aged cars and popular brands with good
resale value. Consequently, buyers have limited range of vehicle options to
choose from.
Sluggish Growth Rate Due to First
Car Buyer Program: From 2011 to 2012, the Thai government implemented
the First-Time Buyer Program to encourage automobile consumption, which led to
a rapid growth in automobile production and sales. However, by the end of 2017
the market was flooded with second hand cars after the end of program. This
caused a decrease of 20%-25% in the price of used car thereby affecting the
industry revenue.
Declining Used Car Sales Demand due
to Covid-19: The demand for used cars decreased during the corona virus
pandemic. This was due to low supply and also due to closure of OEM dealerships
and Local Tents during lockdown. This was further fuelled by decrease in
purchasing power which led to postponing of new and used car purchases. Also,
Thailand has recently recovered from a political and economical instability
which has led to a decline in supply. Apart from sales issues, used car
companies experienced cash flow difficulties due to the fact that most of the
banks were not repossessing cars. The demand for used cars in the country
remained low at the starting of 2020, however there was increase in demand in
the second half of the year post ease in confinement. Slow recovery is expected
in 2021. The manufacturers are expected to shift focus towards digital medium
in order to drive sales and increase customer footfall.
Analysts at Ken Research in their latest publication “Thailand
Used Car Market Outlook To 2025 – Growth of Online Used Car Platforms and Easy
Availability of Credit Escalating Industry's Growth” observed that Thailand
is a growing used car market in South East Asia and is slowly recovering from
the economic crisis after pandemic. The increasing credit availability in the
country along exemption in taxes is driving the growth of the industry.
Increasing focus on promotional and marketing activities, new product launches,
partnerships & collaborations are expected to drive the industry in the
future. The Thailand Used Car Market is expected to grow at a CAGR of 7.3% on
the basis of GTV over the forecast period 2020-2025.
Key Segments Covered
By Market Type
C2C
B2C/OEM organized
Multi Brand Organized Dealer
Multi Brand Unorganized Dealer
OEM Organized
Auction
By Car Segment
Hatchback
1 ton pickup
Sedan
MPV, HPV/Mini MPV
SUV
By Region
Bangkok
North East
North
South
East
West
By Kilometers Driven
Less than 20,000
20,000-50,000
50,000-80,000
80,000-120,000
Above 120,000
By Age of Vehicle
Less than 1 year
1-3 years
3-5 years
5-8 years
More than 8 years
By Age of Buyers
20-30 Years
30-50 Years
Above 50 Years
By Source of Lead
Online (Social Media/Car Portals/Official Website)
Offline (Dealership Walk-in)
Companies Covered (OEM Dealerships)
Toyota Sure Thailand
Honda Used Certified Thailand
Mitsubishi Diamond Used Car
Nissan Intelligence
Mercedes Certified
Volvo
Companies Covered (Online Portals)
ICar Asia (One2Car, Thaicar, Autospinn)
Carsome Thailand
Carro Thailand
Key Target Audience
Used Car Companies
OEMs
Online Used Car Portals
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 –
2014-2020
Forecast Period –
2021-2025
Key Topics Covered in the Report
Executive Summary
Research Methodology
Thailand Used Car Market Overview
Thailand Used Car Market Size, 2014-2020
Thailand Used Car Market Segmentation, 2020
Growth Drivers in Thailand Used Car Market
Issues and Challenges in Thailand Used Car Market
Regulatory Framework
Snapshots on Used Car Financing
Snapshot on Auction Market
Snapshot on Used Bike Market
Ecosystem and Value Chain of Used Car Industry in Thailand
Customers Purchase Decision Making Parameters
Cross Comparison between Major OEMs and Multibrand Dealers and Company
Profiles & Product Portfolios
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 links:-
Related Reports by Ken Research
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
