Japan Used Car Market Analysis and Future Forecast to 2027

Overview

Executive Summary 

Japan used car market has witnessed a sharp rise in demand in 2021 due to non-availability of new vehicles and rising inflation and during 2018 to 2021, the market has expanded at a CAGR of 9%. The initial lockdown's effects, which remained until June 2020, had a significant negative impact on businesses and the demand for used cars in Japan. Immediately following the firms' slow reopening, there was a sharp rise in interest in used cars.

Owing the rapid growth of internet channels in the sector, used car market in Japan is expanding. As companies attempt to improve customer experience and brand recognition, online used-car trading platforms in Japan are increasingly investing in actual retail stores. 

COVID-19 Impact on Used Car Market: All the production sites saw shortages of both raw materials as well as workers as a lockdown was imposed. The battery manufacturers across the world also faced the same hardship. The delivery of necessary raw materials was even impossible with such a disrupted supply chain and the workers needed for the assembling of batteries also feared the unannounced lockdown and hence was more stressed about going back to their homes. Even the factory workers started getting COVID affected, which was a hindrance to the continuous production of new vehicles in Japan. This led to falling in the output of new vehicles and increased sales of Used cars.

Japan Economic Performance
As the pandemic as well as outside factors, continued to hamper recovery, Japan's economy began the year with yet another decline in real GDP. Pent-up demand should help GDP in the short run when limitations are loosened and economic activity returns to normal. On the other hand, it is anticipated that over the near term, relatively high inflation and slowing global growth will stifle economic activity. 

Japan Automobile Market Performance: Japan Automobile Market has 78 facilities spread over 22 prefectures and employs more than 5.5 million people nationwide, is the third-largest automotive producer in the world. One of Japan's main economic engines is its manufacturing sector. 90% of the nation's exports come from the manufacturing sector, which is growing as a result of digitalization and the use of AI. According to the world bank's collection of development indicators, the industry, driven by the automobile industry and many others, generated 19.75% of the country's GDP in FY 2019–2020, making Japan the third largest economy in terms of GDP.

The Demand-Supply Imbalances of new cars: There has been indirect impact on the used car market which came due to the results of new car market. Japan car sales statistics of the new car market saw a deep-down fall not only due to shutdowns of manufacturing units during the peak restrictions on mobility in April/May 2020 but also more importantly due to the global supply chain disruptions by the end of the year.

Soaring Prices of Used Car: The implication of lockdown, which led to stay at home and the sudden global shortage of semiconductors impacted the automobile industry negatively which led to increase used car prices, which are now at their highest levels than in ten years. Various used models are now even more expensive than new cars. These models are typically exchanged through auctions where vehicles are sold to buyers with the highest bids. In the report Japan Used Car Market Revenue and Forecast, we have discussed impact of price fluctuations over the demand of used cars.

Future Growth of Used Car Market in Japan: It is estimated that the Japan used car market will grow at a single digit CAGR in next five years, as the issue of owning a used vehicle has almost vanished and increasing demand for Japan used car across the world will continue to drive the market growth, along with an increase in the number of organized players, while unorganized players will continue to exist during the forecast period. By 2027, total market revenue will reach JPY XX Trillion.

Scope of the Study
The following synopsis is based on the report " Japan Used Car Market Revenue and Forecast to 2027" published by Makreo Research and Consulting. The 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 capitalize on untapped business potential in the specific geography.

The study also discusses Japan Automobile Market performance and COVID-19 Impact on the Used Car Market. The future growth of the used car market in Japan has been covered detailing key factors influencing the performance and historical and present performance of second-hand car sales in Japan. 

Japan Used Car Market Report is Segmented as Follows:

•    Japan Automobile Market

•    Japan Used Car Market

o    Export Performance
o    Import Performance
o    Price Facts
 

Companies covered in the Japan Used Car Market Report