- Before Pandemic, the used car sales remained constant for about 20 years. The industry flourished post pandemic in terms of sales due to changes customers’ preferences and proper initiatives by the Malaysian government with the introduction of Penjana Scheme and escalating used car sourcing.
- Shoppers are moving away from conventional methods and & adopting the use of online platforms for buying & selling their used cars. Through merger & acquisitions, many C2B players, start-ups and auto-classified portals are entering Malaysia market and expanding their presence on visualizing the potential in the industry.
- ~60% of the used car sales comes from Kuala Lumpur & Selengor as a result of High Metropolitan population and disposable income in the region. East Malaysia has a high demand on pickup trucks due to geographical factors. East Malaysian cities namely Sabah & Kuching have generated sales majorly by pickup trucks. Pickup trucks come with better power and manoeuvrability, are especially used for off road commercial applications such as logging, construction, and plantation.
Significant Growth of Digital Forum:
Large number of consumers have started selling and buying cars through online auto classifieds, transactional marketplaces and social media due to significant increase in internet and smartphone penetration in the country. Auction Houses are also increasing their spending on online advertising and generating leads through these platforms. Search for major second-hand car brands on the Internet has increased since last year and a half, says Google trends.
Sales Volume in the Market dominated by the Unorganized dealers: Due to the large presence across the nation, independent dealers (Car Tents) dominate the market. These dealers are also increasing their online presence by listing their inventory on their own website or Facebook account or other platforms resulting in the growth of the market.
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Target on value-added services: To enhance the margins and to provide a hassle-free experience to the buyers, a large number of dealerships and online platforms are offering value-added services such as online car evaluation, certification, vehicle inspection, financing, insurance and ownership transfer.
Incorporation of Latest Technologies to enhance digital experience: Future Technologies involving Artificial Intelligence & Virtual Reality is expected to enhance the digital buying & selling experience for consumers by offering 360° interior & exterior view of the car, estimating car price online via uploaded images, analyzing consumer behavioral insights to show relevant ads according to interests & more.
Covid-19 led to Increase in Car Sales: Due to Movement Control Order restrictions, the demand for used cars significantly diminished during the peak of Covid-19 pandemic. This was due to low supply and closure of OEM dealerships and local tents during lockdown which was further fueled by decrease in purchasing power which led to postponing of new and used car purchases. However, as the lockdown restrictions were on ease, there was a significant growth in used car sales as people started to prefer personal vehicles over shared transport. Other factors increasing the sales were favorable tax policies and sale of vehicles by people with multiple car ownership. During the initial months of the year 2020, the demand for used cars in the country remained low, however there was increase in demand in the second half of the year post ease in the lockdown. To drive sales and to increase customer football, the manufacturers are expected to shift focus towards digital medium.
Analysts at Ken Research in their latest publication “Malaysia Used Car Market Outlook To 2026F (Third Edition) – Demand for Used Cars Increased Due to Shift in User preference towards Personal Mobility, induced by Covid-19” observed that post pandemic, Malaysia is in a late growth phase in the used car market in South East Asia and is slowly recovering from the economic crisis. The increasing credit availability in the country along with car loan moratoriums and other incentives under Penjana is driving the growth of the industry. The industry is expected to demonstrate strong growth in the future led by growth of online used car platforms that provide convenience to both buyers and sellers and makes the entire process smoother. The Malaysia Used Car Market is expected to grow at a CAGR of 9.7% on the basis of GMV over the forecast period 2021-2026F.
Key Segments Covered: –
By Market Structure
By Sales Channel
By Source of Lead generation
By Car Segment
Others (convertibles, coupe, sports vehicles, etc.)
Less than MYR 30,000
More than 90,000
Others (Mitsubishi, Mazda, Mercedes, Audi, etc)
By Ownership period
Less than 2 years
More than 8 years
Less than 20,000
Proton Certified Pre-owned
Mazda Certified Pre-owned
BMW Premium Selection
Mercedes Benz Certified Pre-owned
Online Portals – C2B platforms
Online Portals – Online Auto Classified Platforms
B2B Auction players
NG Chan Mau & Company
Key Target Audience
Used Car Companies
Online Used Car Portals
Used Car Financing Companies
Investors & Venture Capital Firms
Used Car Dealerships
Used Car Distributors Auction Houses
Used Car Associations
Time Period Captured in the Report: –
Historical Period – 2015-2021
Forecast Period – 2021-2026F
Key Topics Covered in the Report: –
Malaysia Used Car Market Overview
Malaysia Used Car Market Size, 2015-2020
Malaysia Used Car Market Segmentation, 2020
Growth Drivers in Malaysia Used Car Market
Issues and Challenges in Malaysia Used Car Market
Ecosystem and Value Chain of Used Car Industry in Malaysia
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
Snapshot on C2B and online classified market
Snapshot on Auction Market
Future Market Size and Segmentations, 2021-2025F
Covid-19 Impact on the Industry & the way forward
Related Reports by Ken Research: –
Indonesia Used Car Market Outlook to 2025
Saudi Arabia Used Car Market Outlook to 2025
Contact Us: –
Ankur Gupta, Head Marketing & Communications
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The post New opportunity for Used Car Dealers in Malaysia raised as a result of the Covid-19 pandemic, driven by consumers’ preference of owning personal vehicles and greater ease & convenience offered by the online platforms: Ken Research appeared first on Ken Research.