As an impact of Covid-19, OLX Indonesia saw a drop of 15-25% in the number of used car listings on its platform in 2020.
Used car platform, Carro, experienced a 600% increase in demand for certified used cars during the pandemic. The platform offered home test drives as well as the option of purchasing cars completely online.
In July 2020, BeliMobilGue became a part of OLX Indonesia and rebranded itself as OLX Autos, offering instant car selling service to customers. OLX Autos is present in 7 cities with ~113 inspection centers and 2,000 partners throughout Indonesia.
Shift towards Online Platforms: In order to tap into the online used car market, many multi-brand and independent dealerships are expected to increase their digital presence. Along with listing of used car inventory online through online portals, some dealerships are also investing in their own websites and Instagram pages. Used car platforms are likely to focus on developing a transactional marketplace to enable 100% online end-to-end transactions from the convenience of the homes without having to visit the showrooms.
Increasing Demand Hatchbacks & SUVs: Although traditionally MPVs have dominated the used car sales in Indonesia, recently there has been increasing demand for Hatchbacks or City Cars and SUVs. The cultural shift from large families to nuclear families and buying cars to individual needs is driving the demand for these cars.
Leveraging Latest Technologies: The online platforms as well as dealerships looking for expanding their presence online, plan to implement latest technologies such as 360 degrees 3D view of the interiors & exteriors, artificial intelligence to analyse car condition through pictures and more in order to create a better user browsing experience. These technologies along with the provision of detailed inspection reports as well as services such as car financing and insurance on a single platform are expected to be a game changer in the market.
The used car industry in Saudi Arabia has grown at a CAGR of 0.8% on the basis of gross transaction value over the period 2014-2019 and declined at a CAGR of -2.4% on the basis of sales volume. The departure of expats from the country and the economic instability contributed to the decline in sales during 2016-2017. The addition of women drivers and the high levels of disposable income in the country are one of the major growth drivers of the industry. Boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.
India is the largest producer and manufacturer of two wheelers in the world followed by the Republic of China. Rising fuel prices is one of the primary growth drivers for two-wheelers due to their higher fuel efficiency. In India, commuters across all age groups use motorized vehicles, especially two wheelers owing to the escalating population and rapid increase in traffic congestion, thereby making two wheelers as the most appropriate and convenient mode of transportation in urban areas. The market has attained speedy growth over the period of five years from FY'2015 to FY'2020. The demand for used two wheelers has seen a constant rise over the past few years, especially from models like Honda Activa, Aviator, TVS Jupiter, Bajaj Pulsar and Discover. Even in terms of exports, two-wheelers produced in India are the proud products of the "Make-in-India" initiative where nearly 7 in 10 automobiles delivered out of India are two-wheelers.
Thailand Used Car sector is in the maturity phase, growing at a CAGR of 1.8% during 2014-2020. Increasing demand for private vehicles, reduction in purchasing power, easy availability of finance, and increasing VAT on new cars are the main reasons behind positive growth in used car sales revenue. Another major driver is the drop in use of public transport due to the pandemic and need for private vehicle. The online used car market has been emerging with the rise in the popularity of e-commerce platforms in the country. The growth of online advertising, which has fuelled the rise of online classified platforms such as iCar Asia, CarSome, Carro and others have revolutionized the way in which pre-owned vehicles have been sold in the country. With the growth in the number of vehicles sold online, these players not only witnessed a sharp growth in marketplace revenue but also from other sources including advertisements, subscriptions and other value added services. The Overall Online Market is expected to Increase at a double Digit Positive CAGR during the period 2020-2025.
Malaysia automotive aftermarket service industry revenue stood at USD ~ Bn in 2020 and recorded a CAGR of 2.9% during 2015-2020. Multi-brand car service centers are majorly preferred by the users with out-of-warranty cars. Lower cost of multi-brand service centers & Availability of quality spares from reputed suppliers is leading to the growth of multi-brand car service centers in Malaysia. OEM car service centers in Malaysia witness the majority of the pre-warranty cars visiting their centers. High-quality service, genuine spare parts, and more reliability of the OEM service centers are other reasons why a customer prefers the OEM service centers in Malaysia.