More Organized Players Plan Foray into the Philippines Used Cars Market as the segment shows Resilience to the Economic Crisis during Covid-19 due to a Pandemic incited surge in Demand: Ken Research
GURUGRAM, India, Dec. 1, 2021 /PRNewswire/ --
- The Used Cars Market in Philippines has been gaining traction since several years, however, the growth has accelerated especially over the last decade as several organized players have entered the segment.
- The increasing digital space encapsulating the used cars segment has provided a boost to the industry in terms of more visibility and even credibility of the buyers and sellers. The growth of E-Commerce is expected to further augment the used car sales.
- The used cars market is primarily skewed towards the Metro Manila region. Since, it is the most developed region in the Philippines, the frequency of an individual upgrading his/her car is higher. Thus, leading to a greater availability of pre-owned cars in the region.
Increasing Used Car Sales due to Covid-19: The pandemic made owning a car an inevitable aspect of an individual's life as travelling via public transport can be hazardous during the times when strict social distancing protocols must be followed. People who preferred public transport during the pre-Covid times are now the potential customers of the used cars market. Since, the pandemic does not seem to completely subside anytime soon, the demand for used cars will keep increasing until majority of the potential customers, who initially travelled via public transport, own a car. Since most of these people could not afford a car in the first place, they would prefer the most optimal solution available, that is, purchasing a pre-owned car.
Expansion of OEM Dealers: The pandemic showed that while the new cars market is becoming vulnerable, the pre-owned cars market is becoming more resilient. In order to take advantage of the growing used cars space in Philippines, some of the popular OEM brands are expanding their presence in the pre-owned certified cars segment.
Rising popularity of Online platforms: The online space in the used cars market has been gaining traction over time on account of increasing internet penetration and Covid-19 protocols that forced several dealers to introduce the concept of virtual showrooms to promote minimum contact and social distancing between buyers and sellers. Increased usage of Facebook and other social networking sites too will contribute to the increased role of online platforms in promoting the used cars industry.
Increased focus on value-added services: Since the number of organized players in the used cars segment is gradually increasing, more dealers have shifted their focus on providing value-added services to survive the increasing competition. While it is quite common for the DDSAs (Direct Dealership Sales Agents) to provide such services, several multi-brand dealers too have started providing additional services such as extended warranty, insurance, after sales services, etc., to become a 'one-stop' destination for used car buyers.
Unorganised Segment's Share to Decline: Small independent dealers with fewer inventories along with individual sellers constitute the unorganized sector. Unorganized segment contributes to majority of the market share in the used cars space basis the number of small dealers spread across the country. However, the share of unorganized dealers is expected to decline in the future as more and more organized players enter the market. Moreover, buying used cars from organized players has an added advantage of the value-added services which are not provided by the unorganized players.
Analysts at Ken Research in their latest publication "Philippines Used Car Market Outlook To 2025 (Second Edition): The Pandemic Incited Increased Demand for Used Cars coupled with Increased Internet Penetration provides for Resilience in the Used Cars Market during the Economic Crisis" observed that Philippines is in a growth phase in the used car market in South East Asia and is gradually recovering from the economic crisis after the pandemic. The increasing credit appetite of banks fueled by competition from foreign financing companies is giving a boost to this industry. Going forward, the industry is expected to demonstrate a moderated growth in the short-medium term fueled by growth of online used car platforms that provide convenience to both buyers and sellers.
Key Segments Covered: -
By Market Structure
- Organized
- Unorganized
By Sales Channel
- Multi-brand Dealers
- Direct Dealership Sales Agents
- Bank Auctions
- C2C (Customer to Customer) Transactions
By Source of Lead generation
- Online
- Dealership walk-ins
By Car Segment
- Sedan
- Hatchback
- SUV
- MPV
- Pickup Vans
- Others (convertibles, coupe, crossover, sports vehicles, and many more)
By Price
- Less than PHP 100,000
- PHP 100,000-300,000
- PHP 300,000-500,000
- PHP 500,000-700,000
- PHP 700,000-1,000,000
- More than PHP 1,000,000
By Brand
- Toyota
- Mitsubishi
- Hyundai
- Ford
- Nissan
- Honda
- Isuzu
- Suzuki
- Others (Kia, Mazda, Mercedes, Audi, and many more)
By Region
- Metro Manila
- Northern Luzon
- Southern Luzon (except Metro Manila)
- Visayas
- Mindanao
By Ownership period
- Less than 2 years
- 2-4 years
- 4-6 years
- 6-8 years
- More than 8 years
By Mileage
- Less than 10,000 Kms
- 10,000-20,000 Kms
- 20,000-50,000 Kms
- 50,000-75,000 Kms
- 75,000-100,000 Kms
- Above 100,000 Kms
By Fuel
- Petrol
- Diesel
- Others (Hybrid and Electric)
Companies Covered:-
OEM Dealerships
- Toyota Certified
- Nissan Intelligent Choice
- BMW Premium Selection
- Mercedes Benz Certified Pre-owned
Banks (Repossessed Car Auctions)
- EastWest Bank
- Security Bank
- BDO Unibank
Online Portals – Online Auto Classified Platforms
- Carmudi
- Carousell
- AutoDeal
- Automart
- Zigwheels
- Philkotse
Multi-Brand Dealers
- Carmax
- Carmix (by Lausgroup)
- Automobilico
- All Cars
- Five Aces
- Berylle Car Sales
Time Period Captured in the Report: -
- Historical Period – 2015-2020
- Forecast Period – 2021-2025
Key Topics Covered in the Report:-
- Philippines Used Car Market Overview
- Philippines Used Car Market Size, 2015-2020
- Philippines Used Car Market Segmentation, 2020
- Growth Drivers in Philippines Used Car Market
- Issues and Challenges in Philippines Used Car Market
- Government Regulations
- Ecosystem and Value Chain of Used Car Industry in Philippines
- Customers Purchase Decision Making Parameters
- Cross Comparison between Major OEMs and Multi-brand Dealers and Company Profiles & Product Portfolios
- Snapshot on Online used car market
- Future Market Size and Segmentations, 2020-2025E
- Covid-19 Impact on the Industry & the way forward
- Pricing Analysis (By Age, Mileage, Brand and Car type)
- Depreciation Calculation Tool
- Analyst Recommendations
- 2nd hand Cars for Sale Philippines
- AutoDeal Philippines Number of Listings
- Automart Philippines Number of Listings
- Average Price Used Car Market Philippines
- BMW Philippines Used Car Premium Selection Market
- Car Auction Market in Philippines
- Carmudi Philippines Number of Listings
- Carousell Philippines Number of Listings
- Cheap Cars for Sale in Philippines
- Covid-19 Impact on Philippines Used Car Industry
- Foreign Used Cars Industry Philippines
- Hatchback Used Cars Market Philippines
- Hyundai Used Car Demand In Philippines
- Imported Used Cars Market Philippines
- Japanese Used Car Market In Philippines
- Korean Used Car Market In Philippines
- Mercedes Benz Philippines Certified Pre-Owned Car Market Size
- Mitsubishi Certified used car Market Philippines
- Offline Used Cars Market Philippines
- Online Marketplace Used Car Philippines
- Online portals for Used Car Philippines
- Online Used Car Major Companies Philippines
- Philippines Automotive Aftermarket Industry
- Philippines Automotive Finance Industry
- Philippines Car Dealer Market
- Philippines Car Dealership Market
- Philippines Nissan Used Car Market Revenue
- Philippines Online Second Hand Car Sales
- Philippines Online Used Car Financing Market
- Philippines Online Used Vehicle Market
- Philippines Organized Used Cars Market
- Philippines Second Hand Car Sales Market
- Philippines Unorganized Used Car Industry
- Philippines Used Car Financing Market
- Philippines Used Car Industry
- Philippines Used Car Market
- Pre-owned Car Market in Philippines
- Second Hand Cars Sale in Philippines
- Second Hand Vehicle Sales Philippines
- Sedan used car Market Philippines
- Toyota Used car demand Philippines
For More Information on the research report, refer to below link:-
Philippines Used Car Market Outlook
Related Reports by Ken Research: -
The Used Car industry in Indonesia has grown at a CAGR of 4.5% on the basis of gross transaction value over the period 2014-2019 and at a CAGR of 2.0% on the basis of sales volume. The overall economic slowdown, as well as the slowdown of the automotive industry due to a reduction in purchasing power of consumers, contributed to the decline in sales during 2016-2017. The entry of various financing companies in the used car industry, as well as the launch of OEM-certified used car programs, has been the major growth drivers of the industry. The 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.
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.
UAE is one of the biggest automobile markets in the industry. The market of used cars has grown at very fast pace in the last few years. The market size by value has registered a five-year CAGR of xx% (2015-2020) as the total value of sales increased from AED xx Billion in 2015 to AED xx Billion in 2020. The market size by volume increased from xx cars in 2015 to xx cars in 2020 while registering a five-year CAGR of xx% in the period. The market had initially slowed down in between 2015 and 2017 due to fall in export value of crude oil in 2015 oil which adversely impacted the purchasing power of consumers. However, since 2017 the market had witnessed tremendous growth. There are a number of growth drivers which has resulted in expansion of the market; these include improving quality of used cars and large number of expatriates among other determinants. There have been a number of regulatory changes that have impacted the market such as the imposition of VAT of 5% for sales of used as well as new cars in 2018. There are a number of challenges that exist for the market such as price discrepancies, lack of standardization and others. Customers of the used cars can be divided according to their needs. The passion for cars in the country is one of the biggest reasons that more and more players are entering the market. Further, the used car market can be segmented on the basis of import, export and re-export of used car sales based on brands and countries. In recent times manufactured certified cars are gaining foothold in the market as they provide reliable quality of cars.
Malaysia's Used Car sector is in the late growth phase, having grown at a CAGR of ~1% during 2015-2020. Increasing demand for private vehicles, increasing purchasing power, easy availability of finance, increased govt. incentives to ensure the sale of new cars are the main reasons behind positive growth in used car revenue. Other major drivers include drop-in use of public transport due to the pandemic and emergence of online players which have made the overall process of selling and buying used cars smoothly, thus boosting sales.
More Used Car Research Reports:- https://www.kenresearch.com/productsearch.php?searchKey=Used+Car
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SOURCE Ken Research
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