Southeast Asia Used Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 65.32 Billion |
| Market Size (2029) | USD 90.13 Billion |
| CAGR (2024 - 2029) | 6.65 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Southeast Asia Used Car Market Analysis
The South-East Asian Used Car Market size is estimated at USD 65.32 billion in 2024, and is expected to reach USD 90.13 billion by 2029, growing at a CAGR of 6.65% during the forecast period (2024-2029).
Consumers' growing preference for private transportation, an increase in personal disposable income and GDP per capita, the emergence of online technologies, and increasing new vehicle prices serve as the major determinants for the growth of the used car market in Southeast Asia.
- According to the Office of the National Economic and Social Development Council, Rayong, Bangkok, and Chon Buri were the leading regions in Thailand with the highest gross provincial product (GPP) per capita at market prices in 2022. The GPP per capita in Rayong touched THB 1,003.5 thousand (USD 27 thousand), followed by Bangkok, with GPP per capita reaching THB 634.11 thousand (USD 17 thousand) in 2022.
As financial stability rises, Southeast Asian consumers increasingly favor private transportation for enhanced personal mobility. However, the escalating prices of new vehicles dissuade some, fueling a growing appetite for used cars. In Southeast Asia, numerous unorganized dealers are offering prices significantly lower than their organized counterparts, thus intensifying market fragmentation and competition. This serves as a notable challenge for the used car market in the region.
The government's aggressive strategy to promote the electrification of vehicle fleets and phasing out of petrol/diesel cars to promote the reduction in carbon emissions may aid the demand for used vehicles across Southeast Asia during the forecast period. Consumers willing to purchase cheaper alternatives to new-energy vehicles are increasingly adopting used cars for convenience in mobility.
Southeast Asia Used Car Market Trends
The Online Segment of the Market to Gain Traction During the Forecast Period
The increasing internet penetration rate and the growing preference of tech-savvy consumers to purchase products from online mediums are significant determinants of the growth of the online segment of the used car market in Southeast Asia.
- The internet penetration rate in the Philippines stood at 58.9% in 2023 compared to 55.78% in 2022. Subsequently, the number of internet users in the Philippines touched 69.05 million in 2023 compared to 64.5 million in 2022, recording a Y-o-Y growth of 7.05% between 2022 and 2023.
- Indonesia's mobile internet penetration rate stood at 79.42% in 2023 compared to 76.1% in 2022.
Enhanced online offerings, like extensive vehicle media and instant finance services, are set to boost the demand for cars that are used online. Market players are actively bolstering their online presence to reach a wider audience. Southeast Asian consumers, preferring dealer purchases, increasingly turn to online platforms to widen their choices before visiting in person.
- In November 2023, Carsome, an online used car platform based in Malaysia, announced its plan to expand its business presence in the ASEAN, including the Philippines, Singapore, and Thailand. The company announced that it launched a pilot operation in the Philippines to assess the market's significant opportunity.
Moreover, using the online medium helps consumers compare prices and the condition of vehicles offered on different platforms, making the market comparatively cost-competitive.
- Key players like Carmudi, Carousell, and Carmax dominate the Southeast Asian online used car field, competing on metrics ranging from user interface and listings to pricing, discounts, and advertising.
Due to the growing consumer preference for adopting digital mediums for purchase, the market is expected to witness hefty sums invested by significant players to redefine their online platforms to enhance customers' convenience during the forecast period. These platforms may increasingly prefer to ramp up their inspection services to ensure that products being sold through their platforms are not damaged and gain a competitive edge in the ecosystem.
Indonesia is Expected to Witness Significant Growth During the Forecast Period
The used car market in Indonesia is witnessing growth, propelled by increasing digitization and companies' efforts to offer immersive remote purchase experiences. Players like iCar Asia and Mobil88 are enhancing their online interfaces, providing detailed price and model information, and streamlining customers' buying and selling processes.
Another significant growth driver is the rise of diverse financing options, notably from companies like Carsome. Carsome's offerings, including lower interest rates and flexible installment plans, have resonated with users seeking financing for their used car purchases. Additionally, Indonesia's vehicle count has steadily risen, thus fueling the demand for used cars.
- According to the Indonesian Ministry of Transportation, the number of cars in use in Indonesia reached 17,202.33 thousand units in 2022 compared to 16,413.35 units in 2021, representing a Y-o-Y growth of 4.8% between 2022 and 2023.
Many companies actively pursue partnerships, collaborations, and acquisitions to bolster their presence in Indonesia's thriving used car market. As the government intensifies its efforts to decarbonize the transportation sector, the electric vehicle (EV) market is projected to register significant growth. With a rising interest in electric passenger cars, older vehicles are likely to flood the secondhand segment, further boosting Indonesia's used car market.
South East Asian Used Car Industry Overview
The Southeast Asian used car market is highly fragmented and competitive due to various international and domestic players operating in the ecosystem. Some prominent players include Carro, Carsome, Cars24 Services Pvt. Ltd, Oto, Carmudi, and Automart PH. These contenders fiercely compete on multiple fronts, from pricing and online visibility to value-added services like warranties and financing, the depth of their car listings, and detailed vehicle performance data availability.
- In March 2024, Honda Malaysia unveiled plans to extend its Honda Certified Used Car Business, targeting a network of 32 sales outlets across Malaysia. The move aims to bolster the nation's used car market, offering consumers a reliable option through a trusted platform. Honda Malaysia emphasized its commitment to providing vehicles aged five years and younger to its Malaysian clientele.
- In January 2024, Carro, an online used car platform from Singapore, inaugurated two new branches in Thailand: Kingkaew and Tiwanon. This strategic expansion underscores Carro's pursuit of the region's promising market. With these additions, Carro's branch count in Thailand reached five by January 2024.
Many companies within this ecosystem are proactively venturing into the online used car market, aiming to strengthen their brand presence and expand their operations across Southeast Asian countries.
South-East Asian Used Car Market Leaders
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Carro
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Carsome Sdn Bhd (including iCar Asia)
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Cars24 Services Private Limited
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Oto
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Carmudi
*Disclaimer: Major Players sorted in no particular order
South-East Asian Used Car Market News
- June 2024: Cambodia's government rejected a proposal for a blanket ban on used car imports, opting instead to focus on regulating the industry. The new strategy involves setting a cap on the age of imported vehicles and mandating annual inspections.
- March 2024: Carro intensified its efforts to go public, with a critical move being the rebranding of its subsidiary, MyTukar, in Malaysia. This comprehensive rebranding, encompassing the entire MyTukar portfolio, marketing materials, and logo, will unfold over the next few months.
- November 2023: Carro, a Singapore-based used car brand, unveiled plans to secure an investment of USD 100 million ahead of its IPO. Carro is now eyeing further funding, having already amassed a substantial USD 1 billion through a blend of debt and equity, with major backers including Softbank Corp. and GIC.
Southeast Asia Used Car Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rising Sales Through Online Channels Foster Market Growth
4.2 Market Restraints
4.2.1 Presence of Various Unorganized Used Car Dealers Hampers Market Growth
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD and Volume - Units)
5.1 By Vehicle Type
5.1.1 Hatchback
5.1.2 Sedan
5.1.3 Sports Utility Vehicle (SUV)
5.1.4 Multi-Purpose Utility Vehicle (MPV)
5.2 By Fuel Type
5.2.1 Gasoline
5.2.2 Diesel
5.2.3 Electric
5.2.4 Other Fuel Types (LPG, CNG, Etc.)
5.3 By Sales Channel
5.3.1 Online
5.3.2 Offline
5.4 By Vendor Type
5.4.1 Organized
5.4.2 Unorganized
5.5 By Purchase Method
5.5.1 Outright Purchase
5.5.2 Financed Purchase
5.5.2.1 Captive Financing
5.5.2.2 Bank Financing
5.5.2.3 Non-banking Financial Corporations (NBFC)
5.6 By Country
5.6.1 Vietnam
5.6.2 Indonesia
5.6.3 Malaysia
5.6.4 Thailand
5.6.5 Singapore
5.6.6 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Carro
6.2.2 Carsome Sdn Bhd
6.2.3 Cars24 Services Private Limited
6.2.4 Carousell
6.2.5 Mercedes-Benz Group
6.2.6 Carmix (Laus Auto Group)
6.2.7 OLX Indonesia
6.2.8 Toyota U Trust (Toyota Motor Corporation)
6.2.9 Honda Certified Pre Owned Vehicles (Honda Motor Corporation)
6.2.10 Oto
6.2.11 Carmudi
6.2.12 Automart PH
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Improved Focus on Extending Value-added Services such as Financing and Insurance Options to Fuel Market Demand
Southeast Asia Used Car Industry Segmentation
A used car, also known as a pre-owned or secondhand vehicle, refers to a car with one or more previous retail owners. The scope of the report also includes certified pre-owned used cars sold by original equipment manufacturers (OEMs).
The Southeast Asian used car market is segmented by vehicle type, fuel type, sales channel, vendor type, purchase method, and country. By vehicle type, the market is segmented into hatchback, sedan, sports utility vehicle (SUV), and multi-purpose vehicles (MPVs). By fuel type, the market is segmented into gasoline, diesel, electric, and other fuel types (LPG, CNG, etc.). By sales channel, the market is segmented into online and offline. By vendor type, the market is segmented into organized and unorganized. By purchase method, the market is segmented into outright purchase and financed purchase (captive financing, bank financing, and non-banking financial corporation (NBFC)). By country, the market is segmented into Vietnam, Indonesia, Malaysia, Thailand, Singapore, and other countries.
The report offers market size and forecasts for the used cars in value (USD) and volume (units) for all the above segments.
| By Vehicle Type | |
| Hatchback | |
| Sedan | |
| Sports Utility Vehicle (SUV) | |
| Multi-Purpose Utility Vehicle (MPV) |
| By Fuel Type | |
| Gasoline | |
| Diesel | |
| Electric | |
| Other Fuel Types (LPG, CNG, Etc.) |
| By Sales Channel | |
| Online | |
| Offline |
| By Vendor Type | |
| Organized | |
| Unorganized |
| By Purchase Method | |||||
| Outright Purchase | |||||
|
| By Country | |
| Vietnam | |
| Indonesia | |
| Malaysia | |
| Thailand | |
| Singapore | |
| Other Countries |
Southeast Asia Used Car Market Research FAQs
How big is the South-East Asian Used Car Market?
The South-East Asian Used Car Market size is expected to reach USD 65.32 billion in 2024 and grow at a CAGR of 6.65% to reach USD 90.13 billion by 2029.
What is the current South-East Asian Used Car Market size?
In 2024, the South-East Asian Used Car Market size is expected to reach USD 65.32 billion.
Who are the key players in South-East Asian Used Car Market?
Carro, Carsome Sdn Bhd (including iCar Asia), Cars24 Services Private Limited, Oto and Carmudi are the major companies operating in the South-East Asian Used Car Market.
What years does this South-East Asian Used Car Market cover, and what was the market size in 2023?
In 2023, the South-East Asian Used Car Market size was estimated at USD 60.98 billion. The report covers the South-East Asian Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South-East Asian Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Southeast Asia Used Car Industry Report
Statistics for the 2024 South-East Asian Used Car market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. South-East Asian Used Car analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
