The
report titled “Indonesia Used Car Market Outlook to 2025 – By Market
Structure (Organized & Unorganized), By Type of Car (MPVs, Hatchbacks, SUVs
& Others), By Brand (Toyota, Honda, Daihatsu, Suzuki & Others), By
Vehicle Age, By Mileage, By Customer Age and By Region (DKI Jakarta, East Java,
West & Central Java, North Sumatera & Others)” provides a
comprehensive analysis on the status of the used car industry in Indonesia. The
report covers various aspects including the current sales volume & gross
transaction value, passenger car ownership in the country, growth facilitators,
issues & challenges faced by the industry and more. The Indonesia Used Car
Market report concludes with projections for future of the industry including
forecasted sales volume & GTV by 2025, future market segmentations,
Covid-19 impact, emerging online used car models, an international case study
and analyst’s take on the future.
Indonesia Used
Car Market Overview and Size
The Used Car industry in Indonesia
has grown at a CAGR of 4.5% on the basis of gross transaction value over the
period 2014-2019 and at a CAGR of 2.0% on the basis of sales volume. The
overall economic slowdown as well as slowdown of the automotive industry due to
reduction in purchasing power of consumers contributed to the decline in sales
during 2016-2017. The entry of various financing companies in used car industry
as well as launch of OEM-certified used car programs has been the major growth
drivers of the industry. Boom in the number of online auto-classified platforms
and the traction of the consumers towards online platforms is contributing to
the inclining used car sales in the country.
Indonesia Used
Car Market Segmentations
By Market
Structure: The industry in Indonesia is largely
unorganized due to the preference of consumers towards standalone local,
independent dealers or the ones located in used car exchanges, along with peer
to peer sales, facilitated by online auto-classified platforms. The organized
market comprises of large multi-brand as well as OEM-certified dealerships.
By Type of Cars: Multi-Purpose
Vehicles or MPVs were observed to dominate the used car market on the basis of
sales volume as they are suitable for large-sized families. Hatchbacks were
found to be the second most preferred types of cars in the country as they are
popular as city cars among individuals in tier-1 & some tier-2 cities.
By Brand: Toyota
continues to dominate the used car market in Indonesia due to the inclination
of the consumers towards the brand. The easy availability of spare parts and
higher residual value of Toyota cars contributes to the higher sales. Honda
contributed the second highest sales volume in 2020.
By Vehicle Age: Five to eight
years old cars were observed to dominate the used car sales in the country in
2020. 3-5 year old vehicles contributed the second highest sales volume. The
average car ownership period in the country ranges between 3-7 years which
leads to many cars following in that age group finding their way to the used
car market. Many financing companies also offer loans on cars that are up to
5-6 years old.
By
Mileage/Kilometers Driven: A large proportion of the used cars
sold in 2020 belonged to the category of 50,000-80,000 kilometers. Cars with a
mileage of 20,000-50,000 kilometers were also largely preferred by the
consumers due to their nearly new look and feel and are also economical. Cars
with mileage more than 80,000 kilometers also account for a significant
proportion of the used car sales as MPVs usually have longer useful life and
mileage.
By Regions: DKI Jakarta
accounted for the highest number of used car sales in the country in 2019 due
to the concentration of young working individuals and urban population in the
region. It is the one of the most populous regions in the country with the
highest passenger car ownership ratio of 405 cars per 1,000 individuals. East
Java contributed the second highest used car sales. Many multi-brand dealers
and used car exchanges are located in this region.
By Customer
Profile basis Age Group: Majority of the buyers in the used
car market were observed to be in the age group 30-50 years. Many young working
professionals, families owning multiple cars belong to this age group. The
demand for used cars among the age group of 18-30 is also increasing with
demand from students and individuals without large families.
Further
Segmentation of Organized Market by Sales Channel: The multi-brand
dealerships contributed majority of the sales through the organized channel in
the country. These outlets are spread all across the country and are a
convenient way of buying a used car with a large inventory and variety of
choices at the disposal of the consumer.
Further
Segmentation of Unorganized Market by Sales Channel: Majority of the
sales through the unorganized channel was identified to have taken place
directly between through local, independent dealerships that are spread all
across the country. The rise of online platforms has also made C2C transactions
more convenient and the easy availability of finance is also a contributing
factor.
Competitive
Landscape of Indonesia Market
The
industry is highly fragmented and competitive with >8,000 dealerships
operating in the market. Many brands such as Toyota, Hyundai, Suzuki,
Mitsubishi, BMW, and Mercedes among others have a certified pre-owned car
program in place in the country. Amongst the multi-brand dealerships, Mobill88
was observed to be the largest dealer with 21 branches across the country. These OEM-certified & multi-brand dealers
compete on the basis of parameters such as geographical presence, value-added
services offered, financing partners, online presence, after-sales services
offered, dealership network and more.
Indonesia Online
Used Car Market
The used car market has witnessed the
entry of various online classified portals and marketplaces in the recent
years. These players follow various different business models and aim to
harness the untapped potential of the industry. On the basis of number of used
car listings, OLX Indonesia dominates the market. Some players such as such as
Mobil123 & Carmudi also cater to dealers along with individual sellers and
buyers.
Indonesia Used
Car Market Future Outlook & Projections
The used car industry is expected to
recover from the Covid-19 pandemic and witness growth by 2025. The increasing
demand from tier-2 cities for personal mobility is expected to drive the growth
of the industry. The growing traction towards online platforms is expected to
compel dealerships to expand their presence online. Online platforms are
expected to leverage latest technologies such as artificial intelligence &
virtual reality to enhance user browsing experience.
Key Segments Covered: -
Indonesia Used Car Market (On the basis of GTV)
Indonesia Used Car Market (On the basis of Sales Volume)
Indonesia Used Car Market Segmentations (On the basis of
Sales Volume)
By Market
Structure (On the basis of Sales Volume & GTV)
Organized
Unorganized
By Type of Car
MPVs
Hatchbacks
SUVs
Others
By Brand
Toyota
Honda
Daihatsu
Suzuki
Others
By Vehicle Age
Less
than 1 year
1-3
years
3-5
years
5-8
years
More
than 8 years
By Mileage
Less
than 20,000 Km
20,000-50,000
Km
50,000-80,000
Km
80,000-120,000
Km
More
than 120,000 Km
By Regions
DKI
Jakarta
East
Java
West
& Central Java
North
Sumatera
Others
By Age Group of
Buyers
18-30
Years
30-50
Years
More
than 50 Years
Organized Used Car Market
By Sales Channel
Multi-brand
Showrooms
OEM-Certified/Authorized
Dealership Outlets
Unorganized Used Car Market
By Sales Channel
Customer
to Customer (C2C)
Local
Dealerships
Dealerships Covered
Mobil88
Toyota Trust (PT Astra Auto Trust)
Hyundai Auto Safe (PT Hyundai Mobil Indonesia)
Suzuki Auto Value (PT Suzuki Indomobil)
Diamond Smart Auto (PT Mitsubishi Motors Krama Yudha
Sales Indonesia)
PT Tunas Ridean Tbk
Online
Auto-Classifieds/Platforms Covered
OLX Indonesia
Mobil123
Carmudi
Oto.com
Carsome
Carro
Key Target Audience
Car Dealerships
Car Manufacturers
Car-Rental and Leasing Companies
Online Auto Classified Companies
Industry Associations
Regulatory Bodies
Used Car Auction Companies
Banks & NBFCs
Time Period Captured in the Report:-
Historical Period:
2014-2020
Forecast Period: 2021-2025
Key Topics Covered in the Report: -
Macroeconomic Overview and Overall Automotive Demand
in Indonesia
Overview and Genesis of Indonesia Used Car Industry
Trends and Growth Drivers in the Industry and
Challenges Faced
Indonesia Used Car Market Size and Segmentations, 2014
– 2020
Ecosystem and Value Chain of Used Car Industry
Customer Decision Making Parameters & Brand
Perception Mapping
Cross Comparisons between Major Authorized Dealerships
and Online Auto-Classifieds/Platforms and Company Profiles
Future Market Size and Segmentations, 2020-2025F
Covid-19 Impact on the Industry, the Way Forward &
Upcoming Online Business Models
Analyst’s Recommendations
For More
Information on the research report, refer to below link: -
Future of Indonesia Used Car Market
Related Reports by Ken Research: -
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