Pandemic has provided a New Opportunity for Used Car Dealers in Malaysia due to greater accessibility via online platforms as well as consumers' preference of owning personal vehicles: Ken Research

Pandemic has provided a New Opportunity for Used Car Dealers in Malaysia due to greater accessibility via online platforms as well as consumers' preference of owning personal vehicles: Ken Research

PR Newswire

GURUGRAM, India, Nov. 11, 2021

GURUGRAM, India, Nov. 11, 2021 /PRNewswire/ -- Key Findings

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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, transactional marketplaces and social media. Auction Houses are also increasing their spending on online advertising and generating leads through these platforms. It has been observed from the Data gathered from Google Trends that the search for major second-hand car brands on the Internet has increased since last year and a half.

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.

Focus on value-added services: Large number of dealerships and online platforms are offering value-added services such as online car evaluation, certification, vehicle inspection, financing, insurance and ownership transfer amongst others so as to enhance their margins and provide a hassle-free experience to the buyers.

Adoption of Latest Technologies to enhance digital experience: Leveraging technologies such as Artificial Intelligence & Virtual Reality is expected to enhance the digital experience for consumers by offering 360° interior & exterior view of the car, estimating car price online via uploaded images, analyzing consumer behavioral insights to show relevant ads according to interests & more.

Increasing Used Car Sales due to Covid-19: The demand for used cars decreased during the peak of Covid-19 pandemic on account of Movement Control Order restrictions. This was due to low supply and closure of OEM dealerships and Local Tents during lockdown which was further fueled by decrease in purchasing power which led to postponing of new and used car purchases.  However as the country witnessed easing of lockdown restrictions, there was a significant traction in used car sales. This was on account of preference of personal vehicles over shared transport, favourable tax policies, and sale of vehicles by people with multiple car ownership. 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. 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 "Malaysia Used Car Market Outlook To 2025 – 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" observed that Malaysia is in a late growth phase in the 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 with car loan moratoriums and other incentives under Penjana is driving the growth of the industry. The industry is expected to demonstrate strong growth in the future led by growth of online used car platforms that provide convenience to both buyers and sellers and makes the entire process smoother. The Malaysia Used Car Market is expected to grow at a CAGR of 9.6% on the basis of GTV over the forecast period 2020-2025.

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Key Topics Covered in the Report

For more information on the research report, refer to below link:-

Malaysia Used Car Market Outlook To 2025

Related Reports: -

Indonesia Used Car Market Outlook To 2025 – By Market Structure (Organized & Unorganized), By Type Of Car (MPVs, Hatchbacks, SUVs & Others), By Brand (Toyota, Honda, Daihatsu, Suzuki & Others), By Vehicle Age, By Mileage, By Customer Age And By Region (DKI Jakarta, East Java, West & Central Java, North Sumatera & Others)

The Used Car industry in Indonesia has grown at a CAGR of 4.5% on the basis of gross transaction value over the period 2014-2019 and at a CAGR of 2.0% on the basis of sales volume. The overall economic slowdown, as well as the slowdown of the automotive industry due to a reduction in purchasing power of consumers, contributed to the decline in sales during 2016-2017. The entry of various financing companies in the used car industry, as well as the launch of OEM-certified used car programs, has been the major growth drivers of the industry. The boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.

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)

The used car industry in Saudi Arabia has grown at a CAGR of 0.8% on the basis of gross transaction value over the period 2014-2019 and declined at a CAGR of -2.4% on the basis of sales volume. The departure of expats from the country and the economic instability contributed to the decline in sales during 2016-2017. The addition of women drivers and the high levels of disposable income in the country are one of the major growth drivers of the industry. Boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.

Philippines Used Car Market Outlook To 2025 (Second edition): The Pandemic Incited Increased Demand for Used Cars coupled with Increased Internet Penetration provides for Resilience in the Used Cars Market during the Economic Crisis

Philippines Used Car market is in its growth phase, having grown at a CAGR of 7.4% (by value in PHP Billion) during 2015-2020. A surge in the demand of private cars, coupled with convenient financing facilities, increasing per capita income, increased internet penetration and enhanced digitalization of the used cars space have been the salient factors leading to the growth of the used cars market in the Philippines. The used car market in Philippines is primarily dominated by the unorganized segment occupying ~55% of the overall used cars market space. Most of the organized players operate in the Metro Manila region.

UAE Used Car and Auto Classified Market Outlook to 2025 ( Second Edition ) - Driven by Growing Expat population and increased Awareness on health and hygiene due to covid-19

UAE is one of the biggest automobile markets in the industry. The market of used cars has grown at very fast pace in the last few years. The market size by value has registered a five-year CAGR of xx% (2015-2020) as the total value of sales increased from AED xx Billion in 2015 to AED xx Billion in 2020. The market size by volume increased from xx cars in 2015 to xx cars in 2020 while registering a five-year CAGR of xx% in the period. The market had initially slowed down in between 2015 and 2017 due to fall in export value of crude oil in 2015 oil which adversely impacted the purchasing power of consumers. However, since 2017 the market had witnessed tremendous growth. There are a number of growth drivers which has resulted in expansion of the market; these include improving quality of used cars and large number of expatriates among other determinants. There have been a number of regulatory changes that have impacted the market such as the imposition of VAT of 5% for sales of used as well as new cars in 2018. There are a number of challenges that exist for the market such as price discrepancies, lack of standardization and others. Customers of the used cars can be divided according to their needs. The passion for cars in the country is one of the biggest reasons that more and more players are entering the market. Further, the used car market can be segmented on the basis of import, export and re-export of used car sales based on brands and countries. In recent times manufactured certified cars are gaining foothold in the market as they provide reliable quality of cars.

Thailand Used Car Market Outlook To 2025 – Growth of Online Used Car Platforms and Easy Availability of Credit Escalating Industry Growth

Thailand Used Car sector is in the maturity phase, growing at a CAGR of 1.8% during 2014-2020. Increasing demand for private vehicles, reduction in purchasing power, easy availability of finance, and increasing VAT on new cars are the main reasons behind positive growth in used car sales revenue. Another major driver is the drop in use of public transport due to the pandemic and need for private vehicle. Thailand 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.

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