Gurugram, India, June 13, 2023 (GLOBE NEWSWIRE) -- The Global Used Vehicle market is moderately fragmented with multiple dealers (both organized and unorganized) operating in the industry. Majority of the used vehicles are sourced from vehicle-rental/ leasing companies & auctions. Direct buying from consumers or individual sellers is another major source.
1. Is the market for Used Vehicle increasing Globally?
There is a significant growth in the used vehicle sales during forecast period majorly due to expected increase in hybrid and electric vehicle sales in coming years which is anticipated to grow by 2027. The conventional used vehicles have also maintained its dominance however, its overall growth during 2022- 2027 is slower as compared to electric vehicles. The demand for used vehicle has increased by a major 46% and will further increase in the future.
2. Focusing on Expanding Digital Presence can be a game changer for used vehicle selling companies
Most consumers these days make used vehicle buying decision after searching online which necessitates synchronizing online and showroom experiences and sharing product information, offering sales support & servicing online. Online platforms can introduce an additional service wherein consumers can go through all the used vehicle auctions taking place around them or that are scheduled for the future. At present, there is not much used vehicle content on Tik-Tok and Snapchat. There is an increase in the sales of used trucks for about 35% more since digital presence of vehicle dealers and it is expected to be around 10% more in the future. These platforms are suitable for targeting new customers and will help to increase business opportunities for used vehicle operators.
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3. Is Partnerships and Collaborations the right way to future growth of used vehicle industry?
Brand authorized/direct dealership agents as well as large multi-brand outlets can partner with cab aggregators operating in the country such as Uber etc. The used vehicle industry sees majorly Mergers and Acquisitions done through horizontal business contributing to 40%, followed by 22% by conglomerates. There have been more than 30 successful collaborations in form of Joint Ventures in the used vehicle industry. Dealerships can collaborate with mid-size corporates & companies to offer additional discounts of up to 25% to people within that age bracket of 25-60 years if they buy a vehicle using the company’s referral. This collaboration will enable the dealership in generating higher number of leads through the companies, which can ultimately lead to better conversion rates and boost pre-owned vehicle sales.
Market Taxonomy
By Type of Market Structure
- Organized Channel
- Unorganized Channel
- OEM Certified Franchise Dealers
- Multi Brand Dealers
- DDSA
- C2C Transaction
- Local Dealership
- Auction Companies
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By Type Of Vehicle
- Cars
- Bikes
- Trucks
- Buses
- Bicycles
- Others
By Age of Vehicle
- 0-2 years
- 2-4 years
- 4-6 years
- 6-8 years
- 8-10 years
- More than 10 years
By Kms Driven
- 0-40,000
- 41,000-80,000
- 81,000-1,00,000
- 1,00,000-1,40,000
- 1,20,000-1,80,000
By Region
- North America
- Europe
- Asia-Pacific
- LAMEA
For more insights on the market intelligence, refer to below link:-
Global Used Vehicle Market
Related Reports By Ken Research:-
SEA Used Car Market Outlook to 2026F: Driven by Covid-19 led shift in User’s Preference towards Private Vehicles and Growing Penetration of Online Used Car Platforms
The used car industry in SEA is expected to grow in the future at a double digit CAGR over the forecast period 2021 to 2026F. The industry is expected to establish strong demand arising due to preference of personal vehicles over public transportation as the after effects of the pandemic. Increasing internet and smartphone penetration in the South-East Asian countries will result in large number of consumers preferring to buy and sell cars through online used car platforms, due to which the used car market is expected to become more organized and gain more traction in the coming years.
Australia Used Car market has grown at a steady growth rate over the past few years supported by increase in population in the country along with the rising trends of upgrading the cars within the period of 1-2 years. Growth of transactional marketplaces offering one-stop solutions to buyers & connecting dealers, financing and insurance companies are also driving the used car market in Australia. Australia used car market is moderately fragmented market with Toyota, fiord and Holden as the market leaders owing to the high market share on the basis of number of used cars sold; followed by other used car brands like Mazda, Mitsubishi, Nissan and Hyundai.
The used car industry is expected to recover from the Covid-19 pandemic and witness growth by 2026. The increasing demand from smaller cities such as Jazan, Arar among others 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 the latest technologies such as artificial intelligence & virtual reality to enhance the user browsing experience. The overall used to new car sales ratio in the country is also expected to improve in the future.
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 the slowdown of the automotive industry due to a reduction in purchasing power of consumers, contributed to the decline in sales during 2016-2017. The entry of various financing companies in the used car industry, as well as the launch of OEM-certified used car programs, has been the major growth drivers of the industry. The 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.
Taiwan Used Vehicle market in terms of sales volume increased at a single digit CAGR over the review period 2013-2018. The market was observed to be at the late growth stage owing to increasing competition in the market which allows offering of varied models of vehicles at lower prices, faster vehicle replacement rate, easy import procedures, and relatively stable average ticket prices. In Taiwan, people prefer buying used vehicles due to its increased affordability and a wide range of offerings at an affordable price point.
Taiwanese government has also adopted certain strategies such as the “Scrappage Program” to promote discard of vehicles which are older than 6 years. The Government awarded a rebate of NTD 50,000 against purchase of new vehicle against discarding of used vehicle. This has led to intensive competition in the used car market as new car sales are growing at a faster pace vis a viz used car.
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