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:
• USS Co., Ltd.
• PROTO Corporation
• Trust Co Ltd
• ORIX Auto Corporation
• Yokohama Toyopet
• SBT Japan
• Autocom Japan Inc
• Crown Japan
The report helps readers to gain information on the following areas:
• How has the Second Hand Car Sales in Japan performed historically, and the markets present scenario?
• What are the factors affecting the Japan used automobile industry growth?
• How has the economy of Japan fared since the outbreak of the virus?
• How Japan Automobile Market has performed in the past and what is the present scenario?
• Where Japan stands in terms of international trade, as well as the current situation of the used automobile market?
• What is the competitive scenario in the Japan Used Car Market?
• What opportunities are anticipated to assist the future growth of used car market in Japan?
Table of Content
1. Research Methodology
Objective of the Study
Data Collection Methods
2. Japan Country Overview– EPTD Analysis (Economic, Political, Technological, Demographic)
Country Overview- EPTD Analysis
EPTD Analysis : Economic Overview
EPTD Analysis: Political Overview
EPTD Analysis: Technological Overview
EPTD Analysis: Demographic Overview
3. Japan Used Car Market – COVID-19 Impact Assessment
COVID-19 Impact on Japan Economy
COVID-19 Impact on Japan Automobile Sector
COVID-19 Impact on Japan Used Car Market
4. Japan Automobile Market Performance
Japan Automobile Market – An Overview
Japan Automobile Market Performance – 2020
Japan Automobile Market Performance - 2021
Japan Motor Vehicle Production –Key Facts
Japan Motor Vehicle Sales –Key Facts
Comparative Analysis of New and Used Car Demand in Japan
5. Japan Used Car Market Performance and Future Outlook
Japan Used Vehicle Sales Performance
Japan Used Car Market – An Overview
Japan Used Car Demand and Outlook
Japan Used Car Export Performance
Japan Used Car Import Performance
Factors Driving Future of Japanese Used Car Export
Japan Used Car Price Shift – An Overview
Japan Used Car Price Facts
Japan Used car Market Revenue and Future Outlook
Japan Used Car Market Developments and Innovations
6. Japan Used Car Market-Macro Economic Factors
7. Japan Used Car Market Dynamics
Industry Trends & Developments
Opportunities in Japan Used Car Market
Industry Driving Forces
8. Japan Used Car Market – Mergers & Acquisitions
Japan Used Car Market Mergers /Acquisitions/ Partnerships 2018-2022
9. Japan Used Car Market – Company Profiles
Company Profile – USS Co., Ltd.
Company Profile – PROTO Corporation
Company Profile – Trust Co Ltd
Company Profile – ORIX Auto Corporation
Company Profile – Yokohama Toyopet
Company Profile – SBT Japan
Company Profile – Mobilico
Company Profile – carsensor.net
Company Profile – Autocom Japan Inc
Company Profile – Crown Japan
Limitations of the Study