Asia-Pacific Used Car Market Outlook, 2029

Asia-Pacific Used Car Market Outlook, 2029

The rise of organized players in the developing nations of the Asia-Pacific region has boosted the used car market by addressing the trust issue that has long dogged the used car sector in those nations. The Asia Pacific Used Car market grew slowly in 2020 compared to 2019 because of the virus outbreak. A number of significant automakers are growing their businesses in Asian markets, including Vietnam, Thailand, and Malaysia. The demand for various vehicle rental enterprises has expanded due to the rising use of luxury cars. Because there are more internet venues for used car sales, there will certainly be a greater demand for used cars in the Asian region. Furthermore, there are an increasing number of online outlets. The secondhand car market has become even more robust. Asia-Pacific gave the used car financing industry a comparable pace thanks to the existence of a few companies in South Asian nations, such as OEMs and small NBFCs, as well as private banks providing more choices for financing used cars. These nations have a fragmented used automobile industry, with numerous OEMs, auction houses, and pre-owned dealers vying for customers by growing their fleet size and providing a variety of financing options. Most buyers who opt to purchase a car with financial assistance frequently appear to be dependent on the financing services provided to them.

According to the research report ""Asia Pacific Watch Market Outlook, 2029,"" published by Bonafide Research, the Asia Pacific Watch market is expected to grow more than 8% CAGR from 2024 to 2029. The used automobile market is anticipated to grow significantly as a result of greater digitization and businesses' ability to offer immersive purchase experiences remotely. Moreover, the expansion of the hatchback sector in the Asia-Pacific used car market will be aided by the proliferation of value-added service offerings and the diversity of finance providers giving credit for used automobiles. As a result of rising used car sales, India is currently leading the Asia-Pacific used car financing market. The primary reason for this increase is the cost-effectiveness of these secondhand cars in comparison to new ones. Additionally, the market's continuous recovery in demand for used automobile financing has been greatly aided by the accessibility of simple financing solutions. The industry for financing old cars is being helped by growing digitization. Digitization facilitates data retrieval, retention, and storing. The majority of information is available digitally. This lessens the need for capital resources and the issue of document storage. Increased end-to-end digitalization in auto financing, including digital loan paperwork and e-signatures, will provide companies a competitive edge. Members of the Association of Southeast Asian Nations (ASEAN) include Malaysia, Indonesia, the Philippines, Singapore, and Thailand. The ASEAN countries are expected to be the main development drivers for the used vehicles market due to the expansion of the automotive industry, increased acceptance of innovative urban mobility, population growth, affordability, higher GDP growth rate, and expansion of the rental car market.

Major Drivers

High new car costs and worries about affordability: The auto industry has seen an increase in demand for cars with cutting-edge amenities like climate control, power steering, and anti-lock brake systems. As a result, new cars are now very expensive. Additionally, price increases in 2019 that were mostly driven by mainstream passenger car categories point to affordability concerns in the new market. This has led to an increase in used car sales in the automotive industry as compared to new car sales. The market for older cars is expected to increase as a result.

rising interest in adaptable hatchback vehicles: The growing demand for hatchbacks that provide flexibility when driving in tight areas is expected to propel the used hatchback car market's rise until 2028. The availability of major automakers like Mercedes-Benz, Audi AG, BMW AG, and Volkswagen, which offer a wide variety of hatchback car models, significantly contributes to the growth and development of the used car industry. In this sector, competitors also provide hatchback cars with a high roofline and a small design.

Major Challenges

Problems related to the growth of the second hand automobile industry: The lack of strict laws and regulations pertaining to the purchase of used cars will pose a threat to the expansion and growth of the used car sector. It will be challenging for the used automobile market to expand due to high rates of depreciation. Because fewer people are using public transit, the coronavirus pandemic has negatively impacted the demand for used cars throughout the Asia-Pacific region. Changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, and technological innovations in the market are all covered in detail in this report on the used car market. For an Analyst Brief and other information about the used car market, get in touch with Data Bridge Market Research. Our staff can assist you in making well-informed decisions that will lead to market expansion.

Problems Associated with Older Automobiles: The prevalence of older models increases maintenance costs and undermines buyer confidence by raising questions about dependability and the need for frequent repairs. In the event of a collision, passenger safety is jeopardized in older cars due to the absence of contemporary safety systems like airbags and ABS. Due to their frequently lower fuel efficiency, older vehicles raise worries about pollution and increase emissions.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric.

Compared to larger or luxury cars, conventional or smaller cars are frequently more cheap. In many regions of Asia Pacific, where consumers are highly sensitive to price, affordability plays a major role in influencing their decisions. Conventional, smaller cars typically use less gasoline. Customers may favour used automobiles with higher fuel efficiency due to concerns about fuel prices in some areas, which would increase the appeal of the conventional class. In Asia Pacific, transportation congestion has grown as a result of rapid urbanization. Smaller automobiles are popular for urban commuting since they are frequently more feasible for navigating congested city streets and finding parking spots.

> Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others.

In comparison to larger SUVs or luxury vehicles, secondhand sedans are typically less expensive to buy and maintain over time. This is in line with the financial consciousness prevalent in the Asia Pacific area. Safety-conscious consumers can rest easy knowing that modern cars frequently include cutting-edge safety equipment like stability control, airbags, and anti-lock brakes. SUVs are becoming more popular because of their increased ground clearance, roominess, and overall toughness. Sedans' market share may be impacted by this, especially in sectors catering to families.

Based on Fuel Type market is divided into Petrol, Diesel, Others

The largest volume share belonged to the gasoline segment. Since many countries prohibit the purchase of used diesel automobiles, this is connected to the falling use of diesel vehicles. On the other hand, it is anticipated that the others section will expand significantly over the projected time. The amount of used CNG cars sold in developing nations has increased over time as well.

Based on Size market is divided into Mid-Size, Compact, SUVs.

Mid-size cars provide enough inside space without being overly huge, striking a compromise between small and large cars. Mid-size automobiles can be a desirable option in areas where buyers want a roomy yet agile vehicle. Fuel efficiency is becoming a more important design consideration for mid-size modern cars. Given the high cost of fuel in the Asia Pacific area, this is imperative. Mid-size automobiles frequently get greater fuel efficiency than larger SUVs, which translates to lower operating expenses for the owner.

Based on Vendor Type market is divided into Organized, Unorganized.

The market was dominated by unorganised dealers, with organised dealers following in second place. Furthermore, because financing is easily accessible and affordable, there are an increasing number of unorganized independent dealers in the used automobile industry. Because of this, dealers who lack organization may find opportunities in the used automobile market due to its low prices and loose documentation requirements.

Based on By Distribution Channel market is divided into Offline, Online.

Salespeople with training are frequently available in offline dealerships to handle concerns, answer inquiries, and possibly even negotiate better prices. For certain purchasers, especially those who are not familiar with the intricacies of car purchasing, this individualized service can be comforting and helpful. Some consumers, particularly those from older generations, might still find that a traditional dealership's well-established reputation and physical location make them feel more at ease. This fosters the confidence and trust that online platforms are still trying to establish in the purchasing process.

Based on country report is majorly divided into various major countries, China, Japan, Australia, South Korea.

China's used automobile industry has seen an interesting change throughout time, which is indicative of the nation's own social and economic advancement. Online companies and company-operated used car dealers make up the fragmented Chinese used automobile market. Renreche, Souche, Guazi, Uxin Group, CAR Inc., and other well-known businesses are included in this group. Online used car dealers compete on a variety of fronts: the quantity of inventory they hold, the number of cities they service, the number of value-added services they provide, the number of quality checks they perform before selling an automobile, and so on. Due to increased digitization and businesses' increasing ability to provide immersive online shopping experiences, the Japanese used car market is projected to expand rapidly. The rise of the used car sector in the region is also expected to be supported by a growing number of financial companies that provide credit for used cars as well as an increase in value-added service offerings. But higher mortgage rates would scare off some potential buyers, which would stop the market from growing. A number of other factors are also contributing to the market's expansion: rising income levels; a growing trend among two-wheeler owners to downsize to smaller cars; shorter car ownership durations; a burgeoning import-export industry; and a rise in the demand for luxury vehicles. Sales of secondhand cars have been steadily rising in Australia over the last few years, and it is expected that this trend will continue in 2023. The need for affordable cars is expected to rise significantly as more and more Australians look for dependable transportation that doesn't break the bank, according to experts. In Australia, both purchasers and regulatory agencies place a high priority on secondhand car safety. One important tool in this approach is the government-backed Australasian New Car Assessment Program (ANCAP). Complete safety ratings are offered by ANCAP for both new and secondhand vehicles.

Key players in the market are focusing on strengthening their online presence by engaging in partnerships with online marketplaces or developing their own e-commerce platforms. This allows them to reach a broader consumer base and offer more transparent and convenient buying experiences. In line with this, manufacturers are organizing certified pre-owned (CPO) programs, which involve inspecting, refurbishing, and certifying used cars to meet specific quality standards. Moreover, these programs enhance trust among buyers in used cars. Apart from this, companies are incorporating advanced technologies, such as artificial intelligence (AI) and data analytics to improve inventory management, pricing strategies, and engagement of individuals.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Used Car market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type
• Conventional
• Hybrid
• Electric

By Body type
• Hatchbacks
• Sedan
• SUV & MUV
• Others

By Fuel Type
• Petrol
• Diesel
• Others



By Size
• Mid-Size
• Compact
• SUVs

By Vendor Type
• Organized
• Unorganized

By Distribution Channel
• Offline
• Online

By Offline Distribution Channel
• Independent Dealer
• Franchise Dealer
• Private Sellers
• Others (Used Car Auctions, Certified Pre-Owned (CPO) Programs, Consignment Dealerships, etc)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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