Categories: Market

Malaysia Used Car Market Outlook To 2025 (Second Edition): Ken Research

New Delhi, September 09, 2021: “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” provides a comprehensive analysis on the status of the used car industry in Malaysia. The report covers various aspects including volume of used cars & market size, production scenario of new cars in the country, target audience, growth facilitators, issues & challenges faced by the industry, and other aspects. Detailing on various players in operating as Multi-Brand dealers, OEM based dealers, Auction based players, C2B players, Classified marketplace players have been carried out.  Malaysia Used Car Industry report concludes with projections for the future of the industry including forecasted sales revenue and volume by 2025, market segmentation, Covid-19 impact, and analysts’ take on the future.

Malaysia Used Car Market Overview and Size:

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.

Malaysia Used Car Market Segmentations

By Market Structure (Unorganized, and Organized): The used car market in Malaysia is dominated by unorganized dealers occupying a market share of over 50% with a significant presence in Tier-2 cities and rural areas. While the organized channel is popular in urban cities and provinces, unorganized channels are predominant across rural areas outside the cities

By Sales Channel (C2C, B2C/OEM, and Auction): B2C/OEM Organized market dominated the used car industry in Malaysia in 2020, both on the basis of value and volume. The majority of the used cars are either sold through the B2C dealers or OEM-based captive dealers owing to the availability of several value-added services. The presence of major OEM is concentrated in Kuala Lumpur, Selangor, and other Tier-1 cities; however, Multi-brand dealers are present throughout the country, both online and offline.

By Source of Lead generation (Online, Dealership walk-ins): In Malaysia, the Online platform is the most preferred method for lead generation for organized players as it eliminates middlemen and the commission margin associated with them. It offers a large variety of used vehicles with a single click and allows person to compare different vehicles at the same time. Moreover, the large stock of used vehicles under one roof is time-saving and considered a convenient method.

By Type of Car: Sedans and hatchbacks are the most popular car types in Malaysia cumulatively accounting for ~65% of the used car sales. This is majorly due to the fact that it has both commercial and personal utility, mostly finding applications by young professionals, store/business heads, on-demand services like taxi and rental services.

By Price: The price range of MYR 30,000-50,000 accounted for the highest percentage share of used cars in Malaysia in 2020.  Sedans and Hatchback are the most popular car models preferred by Malaysians, and a vast majority of them lie in this price range

By Brand: Perodua is the market leader in Malaysia accounting for 32% of the sale of used cars by volume. Cars of Perodua, Proton, Toyota, Honda, Nissan are the most preferred due to strong brand value, reliability, longer life span, and higher retention value of the used vehicles.

By Region: High urban population and disposable income in Kuala Lumpur & Selangor have led to the generation of ~60% of the used car sales over these regions. Due to geographical factors, East Malaysia has a high demand for pickup trucks. East Malaysian cities such as Sabah, Kuching have sales generated majorly by pickup trucks that provide better power and maneuverability, especially for off-road commercial applications such as logging, construction, and plantation

By Ownership Period: Since the finance for a used and new cars is readily available in the country the ownership period of the cars has been decreasing. The majority of the market share is acquired by cars having age of 4-6 years

By Kilometers Driven: Cars with the running of 80,000- 120,000 kilometers dominate the market. Vehicles used for commercial purposes such as taxis, rentals travel in excess of 40,000 km every year

By Fuel: Cars running on petrol occupy a significant proportion of the Malaysian used car market in 2020. The adoption of electric vehicles is at a very nascent stage accounting for only 0.01% of the market currently.

Snapshot on Online Used Car Landscape

The online used car market has been emerging with the rise in the popularity of e-commerce platforms in the country. The growth of online advertising, which has fueled the rise of online classified platforms such as Mudah.my, Motor Trader, Carlist.my, WeMotor and others have revolutionized the way in which pre-owned vehicles have been sold in the country. With the growth in the number of vehicles sold online, these players not only witnessed a sharp growth in marketplace revenue but also from other sources including advertisements, subscriptions and other value-added services. Players such as Carsome, MyTukar are a complete transaction marketplace that provides consumers a completely digital experience and enable them to book test drive & buy used cars online. These platforms also provide ancillary services such as insurance, warranty, financing options & documentation support.These transaction marketplace platforms are expected to demonstrate a ~25-30% CAGR till 2025 on account of growth in the online segment due to rapid internet penetration and increase in transaction volume due to preference of owning personal vehicles, mainly due to Covid-19.

Competitive Landscape of Malaysia Used Car Market

There exists Intense competition in the highly fragmented market with various OEM certified, brand authorized dealerships, multi-brand outlets & independent (standalone as well as clustered dealers) operating in the industry. Used Car Market in Malaysia has been dominated by B2C and OEM Dealerships which has captured a share of a majority share in the sales volume of used cars during 2020. In the OEM segment, local brands Perodua and Proton are the most popular. Price, age and a residual value of the vehicle, brand value, maintenance required are some of the most important factors impacting the preference of consumers. Almost every brand offers services such as 24/7 roadside assistance, free inspection, easy exchange & more under their certified pre-owned program to attract more customers

Malaysia Used Car Future Outlook & Projections

The used car industry is expected to demonstrate strong demand arising due to preference of personal vehicles over public transportation, mainly on account of the Covid-19 pandemic. The sales of economical cars are also expected to increase over the forecast period. Use of advanced technologies such as AI to valuate car online by looking at the pictures only, 360 degree view of the interiors of the car, etc. to enhance digital experience of consumers. FMCCAM is planning to introduce new online marketplace and look for used car financiers from Japan, China and Taiwan so as to increase used car sales.

Corporate Comm India (CCI Newswire)

The Pharma Times News Bureau

Recent Posts

8 Ways Insomnia Affects Skin Health & How To Avoid It

By Dr. Priyanka Kuri, Consultant - Dermatology, Aster Whitefield Hospital, Bengaluru Insomnia, the persistent inability…

4 days ago

Breaking New Ground in Migraine Care: A Landmark Session on Diagnosis and Treatment

Illuminating Latest Advances in Migraine Diagnosis and Treatment New Delhi, December 21, 2024: In a…

4 days ago

Healthcare Startups to Watch Out for in 2025

New Delhi, December 20, 2024: The healthcare sector is undergoing a transformation fueled by technological…

5 days ago

DKMS’s First Global Impact Report of 2023 Serves as New Ray of Hope for Blood Cancer Patients Worldwide

National, December 20, 2024: DKMS just published its first Global Impact Report that outlines the organization's…

5 days ago

Sterling Biotech to start world’s first precision fermentation-based dairy protein factory in Gujarat

Ahmedabad, December 19, 2024: Sterling Biotech Limited, a joint venture between Perfect Day and Zydus, has…

6 days ago

Pioneers in Senior Care, Antara, Partners with Leading Diagnostics Player Dr. Lal PathLabs to Strengthen its Geriatric Care Services

New Delhi, December 19, 2024: Antara Senior Care, an integrated eco-system provider for lifestyle and…

6 days ago