Asia-Pacific Used Car Market – Industry Trends and Forecast to 2030

Asia-Pacific Used Car Market, ByVendor Type (Organized, Unorganized), Propulsion (Petrol, Diesel, CNG, LPG, Electric and Others), Engine Capacity (Full Size (Above 2500 CC), Mid-size (Between 1500-2499 CC), Small (Below 1499 CC)) Dealership (Franchised, Independent), Sales Channel (Online, Offline), Vehicle Type (Passenger Car, LCV, HCV & Electric Vehicle) - Industry Trends and Forecast to 2030.

 Asia-Pacific Used Car Market Analysis and Size

The rising disposable income of the working people is significantly increasing the growth of the market because this enables people to purchase vehicles within a limited budget. As per the Statistics, disposable incomes in low-class households increased by 3 percent to 3.3% in 2021, whereas incomes in high-class households were reduced by 6.4% to 3.9% over the same period. Moreover, the growth of the used cars market witnessed substantial growth in past few years due to expense competitiveness among market players and customers' inability to buy a new car.

Data Bridge Market Research analyses that the used car market is expected to reach USD 636857.41 million by 2030, which is USD 354441.07 million in 2022, at a CAGR of 7.60% during the forecast period. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Asia-Pacific Used Car Market Scope and Segmentation

Market Definition

A car that has one or more retail owners in the past is referred to as a used car, pre-owned car, or second hand car. Franchise and independent rental car agencies and vehicle dealers, buy here pay here dealerships, auctions, leasing offices and private party sales are just some of the places where used cars can be purchased. Some auto dealers provide extended service agreements or warranties, "no-haggle prices," "certified" pre-owned vehicles.

Asia-Pacific Used Car Market Dynamics

Drivers

• High cost of new car and concern regarding affordability

The car sector has witnessed augmented demand for the vehicle with advanced features such as anti-lock brake systems, power steering and climate control. Now the expense of new cars high as a result of this. Also, the affordability issues in the new market are indicated by the increase in price in 2019, which was mainly driven by mainstream passenger car segments. As a result of this, used car sales have augmented as compared to new car sales in the automotive sector. This is projected to rise the demand for the old cars.

• Growing demand for versatile hatchback cars

The used hatchbacks cars are anticipated to increase at a significant growth rate until 2028 driven by increasing demand for hatchbacks that offer flexibility though driving in small spaces. The growth and development of the used car market is assisted by the significant availability of major automakers such as Mercedes-Benz, Audi AG, BMW AG, and Volkswagen because these manufacturers deliver a large collection of hatchback car models. Players in this market also offer hatchback car with a compact design and a high roofline.

Opportunities

• Increasing presence of several car manufacturers and used vehicle dealers

As a result of easy and simple accessibility of finance for the purchase of used car, the used cars market income exceeded in 2021 and will continue to increase steadily. The manufacturing industry is the largest private investor in R&D. To surge regional automotive sector competitiveness and retain its technological hegemony globally, the numerous commission promote for technology standardization and R&D funding in Asia-Pacific. Used vehicle dealerships in this area provide a range of tech-enabled options for tracing automotive performance, such as virtual internet outlets and smartphone applications.

• Growth in online technologies and e-commerce sector

Technological advancements and developments in the telecom sector, improved internet connectivity, and increasing urbanization are some of the major factors in which people can now access information much more efficiently. These features aid used-car owners rapidly advertise their vehicles and share data and information about them. With the help of online platform, now more people can sell and buy cars.

Restraints

• Issues associated with the development of used car market

Expansion and growth of used car market will be vulnerable by the absence of stringent laws and regulations associate with purchasing of used cars. High depreciation rates of used-car will make it difficult for the market to grow. The coronavirus outbreak has adversely impacted the Asia-Pacific demand for used vehicles by decreasing demand for public transportation.

This used car market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the used car market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Covid-19 Impact on Used Car market

The outbreak of COVID-19 pandemic compelled governments to enact regional lockdowns, social seclusion, stringent containment measures and quarantine periods, negatively impacted market demand. As a result of shutdown and lockdown relaxations and a shift in consumer preference for personal mobility. This inspired company owners to use internet platforms for used cars market with alternatives of flexible financing. As a result of the growing consumer desire for used cars in price-sensitive areas, the industry is expected to have significant growth in the upcoming period.

Recent Development

• In 2019, HELLMAN & FRIEDMAN LLC came into a contract with AutoScout24. Through this acquisition, the company aims to deliver value-added marketing solutions by digitalizing its automobile industry business models.
• In 2019, Group1 Automotive, Inc. announced its acquisition with two Lexus dealerships in the New Mexico market to grow its business presence. This assisted the company in making a footprint in the fast-growing market in New Mexico.

Asia-Pacific Used Car Market Scope

The used car market is segmented based on vendor type, propulsion, engine capacity, dealership, sales channel and vehicle type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Vendor Type

• Organized
• Unorganized

Propulsion

• Petrol
• Diesel
• CNG
• LPG
• Electric
• Others

  Engine Capacity

• Full Size (Above 2500 CC)
• Mid-size (Between 1500-2499 CC)
• Small (Below 1499 CC)

Dealership

• Franchised
• Independent

Sales Channel

• Online
• Offline

Vehicle Type

• Passenger Car
• LCV
• HCV
• Electric Vehicle

 Used Car Market Regional Analysis/Insights

The used car market is analyzed and market size insights and trends are provided by country, vendor type, propulsion, engine capacity, dealership, sales channel and vehicle type as referenced above.

The countries covered in the used car market report are report China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC).

China dominates the used car market in revenue growth. This is mostly owing to the growth of the organized and semi-organized sales industry and presence of large number of dealers of used car in this region.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Asia-Pacific brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Used car Market Share Analysis

The used car market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Asia-Pacific presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to used car market.

Some of the major players operating in the used car market are:

• Group1 Automotive, Inc. (U.S.)
• AutoNation, Inc. (U.S.)
• HELLMAN & FRIEDMAN LLC (U.S.)
• PENDRAGON (U.K.)
• CarMax Business Services, LLC (U.S.)
• Manheim (U.S.)
• THE HERTZ CORPORATION (U.S.)
• Cox Automotive (U.S.)
• Sun Toyota (U.S.)
• eBay Inc. (U.S.)
• TrueCar, Inc. (U.S.)
• VROOM (U.S.)
• Asbury Automotive Group (U.S.)
• Lithia Motors, Inc. (U.S.)
• Hendrick Automotive Group (U.S.)