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

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Dec 01, 2021, 09:32 ET

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: -

Indonesia Used Car Market Outlook to 2025 – By Market Structure (Organized & Unorganized), By Type of Car (MPVs, Hatchbacks, SUVs & Others), By Brand (Toyota, Honda, Daihatsu, Suzuki & Others), By Vehicle Age, By Mileage, By Customer Age and By Region (DKI Jakarta, East Java, West & Central Java, North Sumatera & Others)

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.

Saudi Arabia Used Car Market Outlook to 2025- By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford and Others), By Type of Sourcing, By Age of Vehicle (Less than 1 year, 1-3 years, 3-5 years & More than 5 years), By Kilometers Driven (Less than 50,000 Km, 50,000-80,000 Km, 80,000-120,000 Km & More than 120,000 Km) and By Region (Northern, Southern, Central, Eastern and Western)

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 Used Car and Auto Classified Market Outlook to 2025 ( Second Edition ) - Driven by Growing Expat population and increased Awareness on health and hygiene due to covid-19

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 Used Car Market Outlook To 2025 (Second edition) – Growth of Online Used Car Platforms and increased shift from using public transport to personal cars, fueled by Covid-19 to accelerate Industry's Growth

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