Market Trends of Myanmar Used Car Industry
Rising Internet penetration and Online Digital Platforms to drive demand in the Market
- Consumers are shifting from traditional methods and increasingly using online platforms for their used car buying/selling journey. With the growing trend in technology, used car vehicle purchase through online sales has become the most preferred choice for customers over the past few years.
- Moreover, it provides additional facilities to monitor all the required documents, performance, and service records of the vehicle. This has proven beneficial for consumers who can directly compare from a wide variety of choices and apply their desired filter to get the most relevant used car matching their choices.
- Increasing internet and smartphone penetration in the country has resulted in a large number of consumers preferring to buy and sell cars through online auto classifieds and social media. For instance, In 2022, around 21.03 million Internet users in the country, which is 1.5 percent more than in 2021.
- The trend of online purchasing a used car through apps has improved over the period. App developers have been designing mobile applications with more advanced features that offer more vehicle availability and comparable vehicle costs on a single platform. However, many middle-class people will eventually reach the point where they will need to move from a motorbike to a vehicle. Historically, many people have a strong desire to acquire a car.
- The primary reason behind this is that consumers prefer safety, transparency, convenience, and negligible risk while purchasing used cars, which, in turn, gives the organized sector an upper edge compared to the unorganized sector.
- With the above-mentioned development across the country, the market is witnessing major growth during the forecast period.
Understand The Key Trends Shaping This Market
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Authorized Dealership Witnessing Major Growth
- Original equipment manufacturer (OEM)-certified used car dealer channels are forming, with consumers benefiting from higher quality guarantees and more reliable sales terms. Consumers' preferences are shifting toward genuine OEM products. Thought to be of higher quality and more dependable products. Hence, these channels are enjoying higher margins and turnovers.
- There is a growing tendency for original equipment manufacturers to authorized dealers: only a few car makers have launched their own used car dealerships (e.g., BMW, Mercedes Benz, Hyundai, and Toyota). Buying preference towards OEM approved dealers due to greater car quality, price assurance despite normally higher pricing, and guarantee supplied with purchase is attractive for OEM to build their network of used car dealerships with stronger control over resale value, reconditioning for quality, etc.
- Also, with many OEMs offering online channels to attract customers, OEM-certified dealerships are gaining momentum in the market. Also, these dealerships are offering various options to customers for COVID-19, like allowing customers to take a test drive at home or anywhere else they want. The car they purchase can also be delivered directly to their home, and all of these transactions can be completed online without the need for physical contact.
- With many players offering easy exchange and good return value, many customers prefer to buy an OEM-certified car so that they can avail all the options while buying a new car in the future. Certified used cars from OEMs are covered by engine and transmission warranty for at least 1 year or 20,000 km, which is valid at all authorized workshops in the country, along with roadside assistance. This is another reason why people are opting for OEM-certified cars.
- Furthermore, consumers prefer safety, transparency, convenience, and negligible risk while purchasing used cars, which, in turn, provides the segment with an upper edge when compared to the others.
