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Brazil Used Car Market Size (2024 - 2029)

The Brazil Used Car Market is poised for significant growth, with its market size expanding due to various factors despite economic challenges. The automotive sector's substantial contribution to the country's industrial production underscores its importance, while the increasing ratio of used to new cars indicates a transition towards a more mature market. The potential for growth is further enhanced by the rising middle class and youthful demographic, alongside increasing disposable incomes. The market is also undergoing a transformation from informal transactions to a more organized system, driven by technological advancements and improved transaction processes.

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Market Size of Brazil Used Car Industry

Brazil Used Car Market Summary
Study Period 2024 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 151.72 Billion
Market Size (2029) USD 197.75 Billion
CAGR (2024 - 2029) > 4.00 %
Market Concentration Medium

Major Players

Brazil Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

Brazil Used Car Market Analysis

The Brazil Used Car Market size is estimated at USD 151.72 billion in 2024, and is expected to reach USD 197.75 billion by 2029, growing at a CAGR of greater than 4% during the forecast period (2024-2029).

The pre-owned car market in Brazil has continued to grow despite slowing economic activity and externalities that have shaken the auto industry. The automotive sector in Brazil accounts for about 20% of the domestic industrial production, and the current numbers of production and sales put the eighth-largest producer and the seventh in terms of consumption market in the world. According to the Statista, 8.67 million used cars were sold in the country in 2022.

The overall car ownership in Brazil is at 250 for every 1,000 inhabitants. Brazil's used car to new car ratio lies on the cusp of moving from infancy to the growth stage, thereby signifying the start of a new era for the used car industry. However, the gap that exists in correlation to some developed and developing nations is indicative of the high growth potential of both the used car and new car sectors in Brazil.

Moreover, the substantial growth in the upcoming five years can be attributed to the burgeoning middle class and the youthful demographic in Brazil. This expansion is further propelled by the consistent rise in disposable income within the country.

Factors like transparent technology integration, enhanced convenience, streamlined transactions, and other related aspects also drive the projected surge. The used cars market in Brazil is transforming an informal structure characterized by transactions through local mechanics, individual brokers, and private sellers to a more organized and structured system, with an influx of new market entrants.

Brazil Used Car Industry Segmentation

A used car, a pre-owned vehicle, or a second-hand car is a vehicle that has previously had one or more retail owners. On the other hand, a certified pre-owned (CPO) vehicle is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned. The term ''used'' refers to the fact that the car has been driven, and it may have accumulated some wear and tear over its lifetime.

The scope of Brazil's used car market is segmented by vehicle type and vendor. By vehicle type, the market is segmented into hatchbacks, sedans, sport utility vehicles, and multi-purpose vehicles. By vendor, the market is segmented into organized and unorganized.

For each segment market sizing and forecast have been done on the basis of value (USD).

By Vehicle Type
Hatchbacks
Sedan
Sports Utility Vehicles and Multi-Purpose Vehicles
By Vendor
Organized
Unorganized
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Brazil Used Car Market Size Summary

The Brazilian used car market is experiencing robust growth, driven by a combination of economic factors and technological advancements. Despite economic slowdowns, the market has shown resilience, with the automotive sector playing a significant role in the country's industrial production. The transition from an informal to a more structured market is facilitated by the integration of digital platforms and e-commerce, which enhance transparency and streamline transactions. This shift is further supported by the increasing urbanization and internet penetration, allowing for more efficient information dissemination and customer engagement. The market's growth potential is underscored by the burgeoning middle class and youthful demographic, coupled with rising disposable incomes, which are expected to sustain demand for pre-owned vehicles.

The demand for used cars in Brazil is further bolstered by economic considerations, as consumers seek cost-effective alternatives to new vehicles. The market is witnessing a trend towards certified pre-owned vehicles, which offer assurance through rigorous inspections and extended warranties. This initiative, along with the adoption of advanced technologies in used cars, is enhancing their appeal. Independent dealers dominate the market, but there is a noticeable shift towards certified second-hand dealerships, which are becoming key players by offering a comprehensive range of services. The market's fragmentation is characterized by the presence of several key players, such as KAVAK and InstaCarro, who are innovating and expanding their offerings to capture a larger share of the growing demand for used cars.

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Brazil Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Growing Online Marketplaces & Platforms Driving Market

      2. 1.1.2 Others

    2. 1.2 Market Restraints

      1. 1.2.1 Technology Advances, Older Used Cars May Lack the Latest Features

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Hatchbacks

      2. 2.1.2 Sedan

      3. 2.1.3 Sports Utility Vehicles and Multi-Purpose Vehicles

    2. 2.2 By Vendor

      1. 2.2.1 Organized

      2. 2.2.2 Unorganized

Brazil Used Car Market Size FAQs

The Brazil Used Car Market size is expected to reach USD 151.72 billion in 2024 and grow at a CAGR of greater than 4% to reach USD 197.75 billion by 2029.

In 2024, the Brazil Used Car Market size is expected to reach USD 151.72 billion.

Brazil Used Car Market Report Snapshots

Brazil Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)