More Multi-Brand Players Plan Foray into the Singapore 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, Feb. 8, 2022 /PRNewswire/ --
Key Findings
- The Used Cars Market in Singapore has been gaining traction since several years, however, the growth has accelerated especially over the last decade as several online operating 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 car prices are expected to rise and only higher income families will be able to afford cars. This will propel growth of the organized used car sector as the sales occurring through the certified pre-owned car dealerships in the country will increase.
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. 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 soon, the demand for used cars will keep increasing. 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.
Growing Car Prices: There has been a shrinkage in the supply of Cost of Entitlement (COE) certificates since the number of de-registrations of cars, which is a chief determinant of COE supply rate, saw major decline in 2021. COE Premium for cars has been increasing; hence, leading to an increase in the overall cost of cars. The car market is therefore skewing towards higher income families and the sales of used cars is increasing.
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Rising popularity of Digital Showrooms: The online space in the used cars market has been gaining traction over time on account of Covid-19 protocols that forced several dealers to introduce virtual showrooms. These digital platforms help facilitate minimum in-person contact during the process of selling a car by providing 360-degree view of the interiors of the car to enhance digital experience of consumers. Use of advanced technologies such as AI is helps to valuate car online by providing pictures.
Increased Focus on Value-Added Services: Since there are a higher proportion of organized players in the used cars segment, 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, assistance in paperwork, etc., to become a 'one-stop' destination for used car buyers.
Organized Segment's Share to Rise: An organized dealer is defined as an authorized or a multi brand dealership with higher inventory or a greater number of physical outlets in Singapore or an accredited dealership. Organized segment contributes to majority of the market share in the used cars space basis the number of dealers spread across the country. The share of organized dealers is expected to further rise in the future as more and more organized players enter the market. Moreover, buying used cars from organized players comes with the added advantage of availing maximum value-added services which are not provided by the unorganized players.
Analysts at Ken Research in their latest publication "Singapore Used Car Market Outlook To 2025: 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 Singapore 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 E-Commerce penetration is giving a boost to this industry. Going forward, the industry is expected to demonstrate further growth in the short-medium term fueled by the growth of online used car platforms that provide convenience to both buyers and sellers. Singapore Used Car Market is expected to grow at a CAGR of 8.5% on the basis of sales volume over the forecast period 2020 – 2025.
Key Segments Covered
- By Market Structure
- Organized Channel
- Unorganized Channel
- By Organized Channel Source of Lead generation
- Online
- Dealership walk-ins
- By Sales Channel
- B2C
- C2C
- By B2C Sales Channel
- Multi-brand Dealers
- Direct Dealership Sales Agents
- Bank Auctions
- By Type of Car
- Luxury Sedan
- Mid-Size Sedan
- Hatchback
- SUV
- MPV
- Sports Car
- Station wagon
- By Engine Size
- 1000 CC and Below
- 1001 CC – 1600 CC
- 1601 CC – 2000 CC
- 2001 CC – 3000 CC
- 3001 CC and Above
- By Brand
- Toyota
- Honda
- Hyundai
- BMW
- Audi
- Volkswagen
- Kia
- Mazda
- Nissan
- By Region
- North
- East
- West
- South
- Central
- By Ownership period
- 0-2 years
- 2-4 years
- 4-6 years
- 6-8 years
- More than 8 years
- By Mileage
- 20,000 – 50,000 Km
- 50,000 – 100,000 Km
- 100,000 – 150,00 Km
- 150,000 – 200,000 Km
- 200,000 and Beyond
- By Fuel
- Petrol
- Diesel
- Others (Electric, Petrol-Electric, Diesel-Electric, etc.)
- Companies Covered
- Authorized Dealers
- Cycle & Carriage Industries
- Inchcape plc
- Performance Motors Ltd
- Volkswagen Group
- Eurokars Group of Companies
- B2C
- Vin Car
- 88 Motor Trading
- Prime Motor & Leasing
- Hua Yang Credit
- Creative Auto
- Online Portals – Online Auto Classified Platforms
- Carousel
- DBS Car Marketplace
- C2B
- SgCarMart
- Carro
- Motorist
- Car Times Automobiles
- Cosmo Automobiles
- Car some
- Direct Cars
- Oto Pac Motors
Time Period Captured in the Report: -
- Historical Period – 2015-2020
- Forecast Period – 2021-2025
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- Singapore Used Car Market Overview
- Singapore Used Car Market Size, 2015-2020
- Singapore Used Car Market Segmentation, 2020
- Growth Drivers in Singapore Used Car Market
- Issues and Challenges in Singapore Used Car Market
- Government Regulations
- Ecosystem and Value Chain of Used Car Industry in Singapore
- Customers Purchase Decision Making Parameters
- Cross Comparison between Major Authorized Dealers and Multi-brand Dealers and Company Profiles
- Snapshot on Online used car market
- Future Market Size and Segmentations, 2021E-2025E
- Covid-19 Impact on the Industry & the way forward
- Analysts' Recommendations
For more information on the research report, refer to below link:-
Singapore Used Car Market Future Outlook
Related Reports:-
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SOURCE Ken Research
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