Australia Used Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Used Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Used Car Market was valued at USD 37.68 billion in 2021, and it is projected to reach USD 53.87 billion by 2027, registering a CAGR of 6.14% over the forecast period.

The COVID-19 pandemic outbreak has caused major disruption in the automotive industry. During the pandemic, consumers are more inclined to use private transportation. However, economic differences are likely to hinder the purchase of new automobiles, and commuters are likely to opt for used cars due to economic concerns. Moreover, during this pandemic period, virtual reality, online, or digitally generated sales leads purchase new vehicles.

Over the long term, the majority of consumers prefer used cars with an average age and more kilometers driven since used cars in that segment offer an attractive and inexpensive option, with SUVs being the most popular type of automobile. Car dealers are highlighting the importance of having integrated user-friendly platforms to facilitate the used car buyer's experience. These changes and advancements are positively affecting the used automobile sector, with promising future growth.

The used automobile market is dependent on replacement buyers, car owners selling their vehicles, and used car imports, which generates a great deal of uncertainty in terms of obtaining supplies to meet market demand. As a result, these concerns are anticipated to hamper growth in the used car market in the coming years.

Key Market TrendsONLINE SALES CHANNEL IS EXPECTED TO HOLD THE HIGH MARKET SHARE IN THE UPCOMING YEAR

Rapid urbanisation, an increase in internet connectivity, and advancements in the telecom sector have resulted in much improved information flow for people. These characteristics are gradually being used by used car owners to advertise their vehicles and share information about their vehicles online. This has improved the sales process and allows more parties to sell and buy autos.

With online inventory pooling, the used car market has become a single window market, removing any regional restrictions. Despite the fact that inventory locations may be associated with many geographical regions, unique products, or distinct customers, online inventory pooling in the automobile industry has made inventory management practical, simple, and successful. This has increased the viability of Australian used car sales in recent years. Additionally, social media will play a significant role in generating leads for dealers and end users by providing adverts at a lesser cost than other traditional marketing channels. For instance,

• Carsales.com, Australia's biggest online auto marketplace, has debuted its end-to-end online digital purchasing experiences in Australia and the United States, making significant headway in both countries. They have increased the use of their online instant trade-in products in Australia and Korea, which are now key contributors to their growth.

HATCHBACK SEGMENT IS EXPECTED TO HOLD CONSIDERABLE MARKET SHARE IN THE FORECAST PERIOD.

Until recently, automobile manufacturers and dealers were primarily concerned with their new vehicle business, with used automobiles being considered as a byproduct. The market competition and the possibility of new entrants have resulted in a significant increase in used automobile dealerships. Furthermore, the enhanced quality and dependability of used cars transformed consumer attitudes and increased sales of used passenger cars. Investing in used automobile management has become one of the market's requirements, with a shrinking margin, constant rivalry, and demanding customers.

Factors such as the high cost of new vehicles, affordability concerns, an increase in demand for off-lease vehicles, and subscription services provided by franchises, leasing offices, and car dealers have been reported to drive the expansion of the used vehicle market. The used hatchback automobile category in Australia is likely to hold a significant market share, owing to the increasing popularity of SUVs over the last five years, which implies the hatchback is now out of favor. As a result, there is a growing desire for hatchbacks that offer flexibility when driving in tight places. The significant presence of top automobile manufacturers offering a varied choice of hatchback vehicle models contributes to the growth of the used car industry.

Furthermore, Participants in the market provide hatchback vehicles with small designs and high rooflines. Split-folding rear seatbacks, which are typically standard on hatchbacks, have enhanced the market value of this sector.

Competitive Landscape

The automobile sector is witnessing collaborations, acquisitions, and partnerships throughout the globe. To keep up with the growing market, various foreign players and domestic players are focusing on the gain a considerable market share for instance,

• In September 2021,CARS24, a startup in India has recently started its operations in Australia, now allows Australians to buy used cars online in under five minutes and have them delivered to their door.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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