Gurugram, India, March 21, 2022 (GLOBE NEWSWIRE) -- Key Findings
- One negative for used cars is the 7% VAT that's added to the bill if the customer buys from a showroom or used car dealer, or use a loan to finance the purchase.
- Consumers are shifting away from traditional methods & increasing using online platforms for their used car buying/selling journey. Many start-ups and auto portals present in Southeast Asia are entering the Thailand market or expanding their presence through mergers & acquisitions, seeing the industry's potential.
- One Ton Pickups have gained a significant share in the used cars market in the last five years as they are better aligned with the expectations of Thai consumers. This is mainly due to the reason that they can be used as passenger and commercial vehicle for transportation. Moreover, theses vehicle enjoy a tax rebate if registered as commercial vehicles.
Growth of Digital Platforms: Increasing internet and smart phone penetration in the country has resulted in large number of consumers preferring to buy and sell cars through online auto classifieds and social media. Auction Houses are also increasing their spending on online advertising and generating leads through these platforms. Data from Google Trends also indicates that the market has gained more attention. Searching for major second-hand car brands on the Internet increased in the past two years.
Unorganised dealers Dominate the Sales Volume in the Market: Independent dealers (Car Tents) dominate the market due to large presence across the country. These dealers are also increasing their online presence by listing their inventory on their own website/Facebook account or platforms resulting in market growth. The players in the unorganized sector give strong preference to less-aged cars and popular brands with good resale value. Consequently, buyers have limited range of vehicle options to choose from.
Sluggish Growth Rate Due to First Car Buyer Program: From 2011 to 2012, the Thai government implemented the First-Time Buyer Program to encourage automobile consumption, which led to a rapid growth in automobile production and sales. However, by the end of 2017 the market was flooded with second hand cars after the end of program. This caused a decrease of 20%-25% in the price of used car thereby affecting the industry revenue.
Declining Used Car Sales Demand due to Covid-19: The demand for used cars decreased during the corona virus pandemic. This was due to low supply and also due to closure of OEM dealerships and Local Tents during lockdown. This was further fuelled by decrease in purchasing power which led to postponing of new and used car purchases. Also, Thailand has recently recovered from a political and economical instability which has led to a decline in supply. Apart from sales issues, used car companies experienced cash flow difficulties due to the fact that most of the banks were not repossessing cars. The demand for used cars in the country remained low at the starting of 2020, however there was increase in demand in the second half of the year post ease in confinement. Slow recovery is expected in 2021. The manufacturers are expected to shift focus towards digital medium in order to drive sales and increase customer footfall.
Analysts at Ken Research in their latest publication "Thailand Used Car Market Outlook To 2025 – Growth of Online Used Car Platforms and Easy Availability of Credit Escalating Industry's Growth" observed that Thailand is a growing used car market in South East Asia and is slowly recovering from the economic crisis after pandemic. The increasing credit availability in the country along exemption in taxes is driving the growth of the industry. Increasing focus on promotional and marketing activities, new product launches, partnerships & collaborations are expected to drive the industry in the future. The Thailand Used Car Market is expected to grow at a CAGR of 7.3% on the basis of GTV over the forecast period 2020-2025.
Key Segments Covered:-
- By Market Type
- C2C
- B2C/OEM organized
- Multi Brand Organized Dealer
- Multi Brand Unorganized Dealer
- OEM Organized
- Auction
- By Car Segment
- Hatchback
- 1 ton pickup
- Sedan
- MPV, HPV/Mini MPV
- SUV
- By Region
- Bangkok
- North East
- North
- South
- East
- West
- By Kilometers Driven
- Less than 20,000
- 20,000-50,000
- 50,000-80,000
- 80,000-120,000
- Above 120,000
- By Age of Vehicle
- Less than 1 year
- 1-3 years
- 3-5 years
- 5-8 years
- More than 8 years
- By Age of Buyers
- 0-30 Years
- 30-50 Years
- Above 50 Years
- By Source of Lead
- Online (Social Media/Car Portals/Official Website)
- Offline (Dealership Walk-in)
Companies Covered (OEM Dealerships):-
- Toyota Sure Thailand
- Honda Used Certified Thailand
- Mitsubishi Diamond Used Car
- Nissan Intelligence
- Mercedes Certified
Companies Covered (Online Portals):-
- iCar Asia( One2Car, Thaicar, Autospinn)
- Carsome Thailand
- Carro Thailand
Key Target Audience:-
- Used Car Companies
- OEMs
- Online Used Car Portals
- Used Car Financing Companies
- Government Bodies
- Investors & Venture Capital Firms
- Used Car Dealerships
- Used Car Distributors Auction Houses
- Used Car Associations
Time Period Captured in the Report:-
- Historical Period – 2014-2020
- Forecast Period – 2021-2025
Key Topics Covered in the Report:-
- Executive Summary
- Research Methodology
- Thailand Used Car Market Overview
- Thailand Used Car Market Size, 2014-2020
- Thailand Used Car Market Segmentation, 2020
- Growth Drivers in Thailand Used Car Market
- Issues and Challenges in Thailand Used Car Market
- Regulatory Framework
- Snapshots on Used Car Financing
- Snapshot on Auction Market
- Snapshot on Used Bike Market
- Ecosystem and Value Chain of Used Car Industry in Thailand
- Customers Purchase Decision Making Parameters
- Cross Comparison between Major OEMs and Multibrand Dealers and Company Profiles & Product Portfolios
- Future Market Size and Segmentations, 2021-2025F
- Covid-19 Impact on the Industry & the Way Forward
- Analysts' Recommendations
- Thailand Used Car Market
- Number of Used Car Companies in Thailand
- Number of Online Used Car Companies in Thailand
- Used Car Domestic Players Thailand
- Financing of Used Cars Thailand
- Used Car to New Car Ratio Thailand
- Toyota Number of Dealers Thailand
- Honda Number of Dealers Thailand
- Honda Finance Partners Thailand
- Nissan Number of Dealers Thailand
- Nissan Finance Partners Thailand
- Mitsubishi Number of Dealers Thailand
- Mitsubishi Best Selling Products Thailand
- Used Car Sales Thailand
- Toyota Market Share
- MITSUBISHI Apotek Market Share
- Nissan Market Share
- Honda Market Share
- Future plan of Used Cars in Thailand
- Online portals for Used Car Thailand
- Carsome Thailand Users
- Carro Thailand Users
- One2Car Users Thailand
- Carsome Thailand Revenue
- Carro Thailand Revenue
- One2Car Thailand Revenue
For More Information on the research report, refer to below link:-
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