Market Trends of Belgium Used Car Industry
Rising Adoption of Digital Technologies Will Foster the Growth of the Target Market
- The adoption of advanced technology by tech-savvy young individuals, the emergence of e-commerce marketplaces, and various companies' aggressive strategies to spend on online advertisements are boosting the demand for used cars sold through online platforms. These platforms assist consumers in making informed decisions as end-end information on vehicles is already listed, such as vehicle make, model, kilometers driven, engine capacity, condition, etc.
- Moreover, increasing internet penetration rates and a high urban population across Belgium contribute to developing an efficient ecosystem wherein vehicle owners can reach out to buyers from different parts of a region and initiate a smooth online sales process without any need to visit a physical location.
- The Internet penetration rate in Belgium stood at 94.44% in 2022, an increase from 2021, when the internet penetration rate stood at 92.0%. Belgium boasts one of the highest urbanization rates in the European region, with 98% of its overall population residing in urban areas as of 2022. These consumers are highly tech-savvy, and most of them have the financial capability to make an informed decision to purchase a vehicle for their mobility. Owing to these factors, the online used car market in Canada is expected to showcase positive growth in the coming years.
- Although Belgium's public transportation infrastructure is highly efficient, consumers in Belgium prefer to opt for private vehicles for shorter commutes, which enhances the potential for personal mobility, thereby assisting the growth of the used car market in Belgium.
- To gain a competitive advantage in the lucrative online used car market, various players across Belgium are actively engaging in integrating into the cross-border sales opportunity with a high focus on marketing. With the increasing internet penetration and usage of online classified platforms for making purchasing decisions, consumers can buy second-hand cars from their neighboring countries, which helps them get a better price for used car models. Belgian companies also have an opportunity to expand their business presence by providing cross-border sales service to countries such as France, Luxembourg, etc., which will assist them in enhancing their business performance.
- Further, improved offerings such as an enormous number of photos and videos of the used vehicles being sold through online platforms and easy online instant finance, insurance, and warranty service are expected to fuel the demand for used cars in Belgium in the coming years.
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Petrol Operated Used Cars Remained the Preferred Fuel Type in Belgium
- Based on fuel type, petrol-operated vehicles remained the preferred choice of consumers willing to purchase used cars in the Belgian market, attributed to their lower prices compared to their counterparts in the used car market. In January 2023, a total of 57,135 units of second-hand cars were registered, compared to 55,821 units in the same month last year and 55,740 units in 2021. This marks an increase of 2.4% compared to 2022 and 2.5% compared to 2021. The share of petrol-used cars among the 57,135 units sold accounted for the majority share of 54.5% in January 2023 compared to 51.3% in 2022.
- On the other hand, the share of diesel-used cars accounted for only 35.6% in January 2023, compared to a share of 43.1% in January 2022, marking a decrease from the previous year. The second-hand electric vehicles (EVs) in Belgium are still a niche category, with a share of only 1.7% contribution. It was witnessed that hybrid used cars accounted for a share of 7.7% in January 2023, compared to barely 4.2% a year ago, owing to the growing adoption of electric vehicles in the country, which is creating an opportunity for used EV space in the used car market.
- German-model used cars are highly preferred by consumers in Belgium due to their price advantage. The most sold second-hand brands in January 2023 were Volkswagen, BMW, Opel, Mercedes and Peugeot. VW Golf and VW Polo, the Opel Corsa, the BMW 3-Series, and the Ford Fiesta were the most popular models as of January 2023. The trend continued in June 2023, which witnessed a 45.91% contribution of petrol-used cars monthly online business-to-consumer used car stock in Belgium.
- Petrol-operated used cars will cease to remain the popular choice among consumers in the short term till the new EV market reaches its optimal growth stage. The used EV market will further witness expansion as the government of Belgium implements strict regulations, such as the legislation of the Flanders government, which is in the planning stage to ban sales of EV vehicles in the used car market by 2030.
