Indonesia Used Car Market Revenue and Forecast to 2027

Overview

Executive Summary 
Indonesian Used Car market is expected to grow at a CAGR of 6% from 2022 to 2027, as the barrier to owning a used car has almost entirely disappeared. From a decade ago, there has been an increase in demand for secondhand cars in Indonesia thus second-hand car sales in Indonesia has increased and expected to grow in coming years.

However, earlier used cars in Indonesia were frequently inadequately evaluated and individuals preferred to buy them based on recommendations from friends and family. In recent year the major evolution of used car market in the country is observed in the organised structure, which comprises of OEM authorised dealerships and multi-brand organised showrooms that sell a wide selection of used cars from various used car firms that are divisions of major automakers also buyers are shifting from local dealers to online used car players in the country.

Indonesia Economic Performance
 After experiencing a decline in the third quarter, Indonesia's economy significantly recovered and concluded 2021 with output higher than in 2019 prior to the pandemic. The economy's growth is anticipated to pick up in 2022 by 5.0% as economic activity continues to normalise. With high momentum entering 2022 for private consumption and investment. 

Indonesia Automobile Market Performance: In terms of automotive output within ASEAN and Southeast Asia, Indonesia comes in second. However, because of its rapid recent expansion, Indonesia is predicted to somewhat bridge the gap with Thailand's dominant position during in the coming years. Indonesia's domestic automotive production facilities are currently heavily reliant on foreign direct investment, primarily from Japan. The influence of COVID-19 on Indonesia automobile market in 2022 is still being felt. In 2021, the sale of cars in Indonesia increased by 66.8% to 887,202. In June 2022, car sales in Indonesia increased by 8.9%. Moreover, to enhance the automobile sector in the nation, the country should also build auto part manufacturing sectors in order to support the automobile manufacturing sector. This section identify Indonesia car sales statistics.|

Going online was a brand-new trend that the COVID-19 introduced to the world. Indonesian businesses did not lag behind either. Several multi-brand and independent dealerships began to strengthen their online presence in an effort to get into the online used automobile market. In addition to advertising their used car inventory online through internet portals, a number of dealerships have invested in their own websites and Instagram profiles.

Covid-19 impact on used car market: The COVID-19 had an effect on the auto industry, and as a result, automakers are cutting costs even if the pandemic-caused economic depression is worsening. As a result, used car prices are currently falling. Nevertheless, major companies like OLX Indonesia saw a fall of 15% to 25% in the number of used car listings on its website during the first half of the year 2020. However, there is still competition between the markets for new and used cars because dealerships offer discounts and new vehicles include insurance.

Segmentation
By Major City: Indonesia's capital city of Jakarta saw the most used car sales nationwide. Due to the presence of young employees and the urban population, it is one of the most populated locations in the country and has the highest per-1,000-person ownership rate of passenger cars. The sale of used cars in East Java came in second. This region is home to a large number of multi-brand shops and used vehicle lots.

By Car Type: According to analysis, large families, among other consumer categories, choose MPVs, which made up the majority of domestic used car sales in Indonesia in 2020. The Honda Mobilio, Toyota Innova, and Avanza were revealed to be the most popular models in the category. In addition, city cars, hatchbacks, sedans, and SUVs are becoming more and more popular. 

Future Growth: The Indonesia Used Car Market is expected to witness tremendous growth in the coming years, as demand for used car is rising not only among personal use but also rental service players are also preferring Used car over new car. Whereas, Indonesia has reintroduced a temporary luxury tax break on the sales of smaller cars because the concession raised demand for automobiles. The tax break, which was scheduled to end in August 2021, will now be available through the end of the year, the ministry declared in a statement, this expected to propel the demand for used cars. 

Scope of the Study
The following synopsis is based on the report " Indonesia Used Car Market Revenue and Forecast to 2027" published by Makreo Research and Consulting. This report comprehends Indonesia Used Car Market Revenue and Forecast. Used market analysis has been carried on various parameters considering both qualitative and quantitative factors.
Indonesia used car market report delves deeply into various parameters such as Market size, segmentation value chain analysis, and industry cause and effect analysis. 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.

Indonesia Used Car Market Segmentation
•    Indonesia Automobile Market
•    Indonesia Used Car Market

• By Car Type
• By Demand

Companies covered in the Indonesia Used Car Market Report: •    Dealership: