Asia Pacific Used Car Market Revenue and Forecast to 2027 –Segmentation by Fuel Type, Car Type & Country

Overview

Executive Summary 
The Asia Pacific Used Car Market is expanding at a moderate rate and in 2020 growth was slow as compared to the previous years. However, by the second half of 2021, the industry has started steadily developing, and it is predicted to grow in the years to come driven by the rising need for personal mobility, extreme weather conditions, rising new car prices, and many others. The Asia Pacific used car market grew at a CAGR of 4% in the last five years. In addition, countries including Japan, Thailand, the Philippines, and India, are experiencing a sharp rise in demand for used cars. 

However, the COVID-19 pandemic has caused havoc in the automotive sector. Customers have shown a preference for private transportation due to time restraints and worries about safety during the outbreak. Similar to the above, the exponential financial slowdown will likely make it more difficult for visitors to purchase brand-new vehicles, which will make used vehicles more tempting to them. As a result, it is projected that the used car market would expand in the years to come.

Moreover, online sales are now a more important factor in market growth. Websites for vehicle marketplaces have been crucial in enabling one-click access for clients. Together, these factors helped to increase the market for used cars dramatically.

As in almost all buyers of used cars in Thailand and Indonesia began their car-buying process online, which shows how rapidly e-commerce is expanding in these markets. Due to the removal of time and geographical limitations, online used automobile sales are in high demand in Asian countries including India, China, and Japan. The sector has benefited from practical used-car advertising options owing to digitalization and e-commerce, which has also increased its reach in the area. The first benefit of using an e-commerce platform for used car sales is that it can eliminate many middlemen, lower the cost of sales, and lower the sales price. The second benefit is that it can lower inventory expenses, increase inventory turns, and lower costs.

COVID-19 Impact on Asia Used Car Market: The COVID-19 pandemic had impacted both supply and demand.  Countries were compelled, due to the pandemic, to temporarily reduce demand for both new and used vehicles in the Asia-Pacific region. Furthermore, consumer purchasing has been impacted globally due to the global economic slump. Car sales have decreased as a result of this. The demand for new or used cars has increased as a result of the shift in preference from cabs and public transportation to owning a car, which has been brought on by the majority of the population to avoid public transportation due to social distancing conventions and fear of infection. In addition, a sizable portion of people wants to purchase automobiles now that the epidemic has subsided and the limits on mobility have been eased.

Asia Pacific Economic Performance
In Asia Pacific region, the recovery from the pandemic has been worsened by the ongoing war between Russia and Ukraine exacerbating the GDP growth. On the other hand, the Asian and Pacific region to grew faster in 2022 because of accelerating vaccination and policy support.  In the Asian region, the projected GDP growth is higher for India at 9.5% followed by China at 8.0% for the year 2021. For 2022, India leads the race in GDP growth with its economy expecting to grow by 8.5% much higher than any other country in the world.  In the Pacific Region, New Zealand is expected to grow by 5.1% and 3.3% respectively in 2021 and 2022 whereas, Australia, another advanced economy is expected to grew by 3.5% in 2021 and 4.1% in 2022.

Asia Automobile Market Performance
Attributed to the rising car sales, especially from China, Japan, and India, the Asia-Pacific region is expected to maintain a strong market position. Major automakers have manufacturing plants in this region to accommodate the increasing market demand. Due to the growing car sector in Asia-Pacific countries, major automotive manufacturers and distributors have numerous investment options. In recent years, there has been a significant increase in the production and manufacturing of automobiles, mainly in Malaysia, Thailand, Indonesia, and Vietnam. Even though all of these nations have focused on the expansion of the automotive sector, their various consumer populations and market niches are highly distinct.

Segmentation
By Vendor Type: The used car market is divided into organized dealers and unorganized dealers based on the type of vendor. In 2021, unorganized dealers dominated the market with organized dealers coming in second. In addition, the number of unorganized independent dealers in the used car market is rising due to affordability and easy access to finance. As a result, given its low prices and lax paperwork requirements, the used car market could present a chance for disorganized dealers.

By Fuel Type: The market is divided into Petrol, Diesel, Electric, and CNG. In the Asia Pacific Used Car Market in 2021, the petrol segment had the biggest volume share of more than 40%. This is related to the declining use of diesel vehicles as many governments forbid the acquisition of secondhand diesel vehicles. Whereas, the others segment is predicted to grow significantly during the forecasted period. In emerging countries, the volume of used CNG car sales has also risen over time.

By Countries: In 2021, China held the largest market share in Asia Pacific Used Car Market followed by Japan, Indonesia, and India. China is one of the world's largest auto marketplaces, producing more than half of all automobiles worldwide. China is both the world's largest used car market and the world's largest automobile producer. China’s government has introduced a series of measures over recent years with the view of stimulating the sale of used cars in the country. 

Whereas, the used car market in Japan offers a wide range of vehicles, including accident-damaged, brand-new, and damaged vehicles. All across the world, used Japanese cars were sold through auction houses. The main factor contributing to Japan's used car growth is the country's exquisite reputation for used car sales, which is attracting domestic as well as foreign customers.

While new car sales are declining in Indonesia, the used car market is booming as more people opt for used vehicles over new ones since they are more affordable. Many consumers opt to buy used automobiles, according to used car dealers, not only because they are less expensive, but also because vehicles between the ages of three and seven are still in good condition.

India, on the other hand, has the smallest market share because the used automobile industry there is still developing and has a lot of space to grow. Before the COVID pandemic, purchasing a used car was frowned upon, but when the pandemic reduced savings and purchasing power, individuals started turning to used cars as first-time buyers.

Scope of the Study
Makreo Research has published the Asia Pacific used car industry titled " Asia Pacific Used Car Market Revenue and Forecast to 2027–Segmentation by Fuel Type, Car Type & Country". The report delves deeply into various parameters such as Market size, segmentation value chain analysis, and industry cause and effect analysis. The study discusses, Asia car sales statistics in comparison to Second-hand car sales in Asia. 

The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography. The future growth of Asia used car market has also been discussed in the report in detail. The Asia Pacific used car market report is the right blend of qualitative and quantitative factors.

Asia Pacific Used Car Market Segmentation

•    Asia Pacific Automobile Market

•    Asia Pacific Used Car Market

o    By Vendor Type

• Organized
• Unorganized

o    By Fuel Type

• Petrol
• Diesel
• Electric
• CNG

o    By Country

• China
• Japan
• Indonesia
• India

Companies covered in the Asia Pacific Used Car Market Report