Market Size of Hong Kong Used Car Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.72 Billion |
| Market Size (2029) | USD 2.76 Billion |
| CAGR (2024 - 2029) | > 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Hong Kong Used Car Market Analysis
The Hong Kong Used Car Market size is estimated at USD 1.72 billion in 2024, and is expected to reach USD 2.76 billion by 2029, growing at a CAGR of greater than 8% during the forecast period (2024-2029).
Over the medium term, the used car market is gaining popularity in the country. The main reason for this has been the advent of organized players in the market, which has taken care of the trust deficit plaguing the used car market in those countries for ages.
Due to increasing digitization and the ability of companies to provide immersive purchase experiences remotely, the used car market is expected to witness significant growth. Furthermore, the rise in value-added service offerings and the variety of finance providers offering credit for used cars will also contribute to the growth of the used car market across the country.
Factors such as a rise in income levels, increasing demand for luxury cars, shorter car ownership periods, booming import-export, and a growing preference for two-wheeler owners to upgrade to small and compact cars drive the growth of the market.
Due to the pandemic's employment uncertainty, pay cuts, and job losses, new cars are becoming increasingly out of reach for middle-class consumers. Used cars offer a viable and balanced alternative, which in turn is likely to witness major growth for the market during the forecast period.
Hong Kong Used Car Industry Segmentation
A used car, a pre-owned vehicle, or a secondhand car is a vehicle that has previously had one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.
Hong Kong's used car market is segmented into vehicle type, vendor type, and fuel type. Based on the vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. Based on the vendor type, the market is segmented into organized and unorganized. Based on the fuel type, the market is segmented into gasoline, diesel, electric, and alternative fuel vehicles.
For each segment, the market sizing and forecast have been done based on the value (USD).
| Vehicle Type | |
| Hatchback | |
| Sedan | |
| Sport Utility Vehicles (SUVs) | |
| Multi-Purpose Vehicles (MUVs) |
| Vendor Type | |
| Organized | |
| Unorganized |
| Fuel Type | |
| Gasoline | |
| Diesel | |
| Electric | |
| Alternative Fuel Vehicles |
Hong Kong Used Car Market Size Summary
The Hong Kong used car market is experiencing significant growth, driven by the emergence of organized players that have addressed longstanding trust issues within the sector. The increasing digitization of the market, coupled with immersive remote purchasing experiences, is further propelling this growth. The market is also benefiting from a rise in income levels, a growing demand for luxury vehicles, and a shift in consumer preferences towards compact cars. The economic impact of the pandemic has made new cars less accessible for many middle-class consumers, making used cars a more viable option. This trend is supported by the availability of diverse financing options and value-added services, which are enhancing the appeal of used cars.
The expansion of online channels is a key factor in the market's growth, with online platforms investing in physical retail stores to boost customer experience and brand recognition. The increasing number of internet users in Hong Kong is facilitating the use of these platforms for purchasing used cars, offering features like detailed car photos and videos, and easy online financing. The market is also seeing new entrants that compete by offering customized services and competitive pricing. The COVID-19 pandemic has accelerated the shift towards online sales, with virtual tours and home delivery services becoming more common. Key players in the market include Venture Motors Ltd., Zung Fu Limited, and Kam Lung Motor Group, among others, with collaborations and new policies shaping the market landscape.
Hong Kong Used Car Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Rise in Price of New Vehicles
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1.2 Market Restraints
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1.2.1 Trust And Transparency In Used Car Remained A Key Challenge For Consumers
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value - USD)
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2.1 Vehicle Type
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2.1.1 Hatchback
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2.1.2 Sedan
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2.1.3 Sport Utility Vehicles (SUVs)
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2.1.4 Multi-Purpose Vehicles (MUVs)
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2.2 Vendor Type
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2.2.1 Organized
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2.2.2 Unorganized
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2.3 Fuel Type
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2.3.1 Gasoline
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2.3.2 Diesel
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2.3.3 Electric
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2.3.4 Alternative Fuel Vehicles
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Hong Kong Used Car Market Size FAQs
How big is the Hong Kong Used Car Market?
The Hong Kong Used Car Market size is expected to reach USD 1.72 billion in 2024 and grow at a CAGR of greater than 8% to reach USD 2.76 billion by 2029.
What is the current Hong Kong Used Car Market size?
In 2024, the Hong Kong Used Car Market size is expected to reach USD 1.72 billion.
