Market Trends of South-East Asian Used Car Industry
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.
