“Introduction of government policies (Scrappage Programme) coupled with shift in customer preference towards Captive Dealers for purchasing used vehicles have driven the Taiwan Used Vehicle Market”.
The report titled “Taiwan Used Vehicle Market Outlook to 2025 – By Type (Sedans, SUV’s, Hatchbacks, MPVs, LCVs and Others), By Vehicle Age, By Cities, By Organized and Unorganized, By Brand (Toyota, Mitsubishi, Honda, Nissan, Mercedes Benz, Mazda and Others), By Distance Driven and By Price Range” by Ken Research suggested that the Taiwan Used Vehicle Market has been increasing due to surge in average disposable income per capita coupled with faster car replacement rate and introduction of government policies to offer subsidy on purchase of new vehicles. The market is expected to register a positive CAGR of 4.8% in terms of sales volume during the forecast period 2018-2025.
Government’s Scrappage Program: Taiwanese Government has initiated a scrappage programme in the year 2016 to promote the sale of new cars by providing subsidy of NTD 50,000 on purchase of new car and discarding/exporting vehicles older than 6 years has given rise to the sales volume of used cars in Taiwan. The scrappage program has been quite successful, as it has led to around 30% of new vehicle purchases in the year 2016, which shows it was an effective strategy. The sale of new vehicles in the country has positively impacted the used vehicle market in Taiwan as it has led to faster replacement period of a vehicle.
Faster Replacement Age of Vehicles: The average replacement rate of used vehicle in Taiwan is growing over the years from 3.5 years in 2013 to 3.4 years in 2018, largely due to the high resale value a seller gets on replacing a vehicle between 2-4 years of vehicle age. The dealership outlets keep replacing the cars with the fast moving models so as to ensure higher margins on the sale of such cars. The value of a new car depreciates 20% in the first year followed by a depreciation of 5% each year henceforth.
Strong Presence of Online Platform and Emergence of Captive Dealers: Strong reach of online platforms and the facility to provide inspection check and certificate of original cars by captive dealers has instill a sense of security in the mind of consumers and has largely helped organized dealers to gain traction in the market. Moreover, additional services provided by online platforms and captive dealers includes financial consultation and transfer of registration certificate on buying a used car has lessen the burden of consumers and has positively impacted the used vehicle market in the country.
Key Segments Covered:-
By Distribution Channel
Organized Players
Unorganized Players
By Organized Players
Multi-Brand Dealers
Captive Dealers
Auction Dealers
By Type of Vehicle
Sedans
SUV’s
Hatchbacks
MPVs
LCV’s
Others
By Vehicle Age
0-2 Years
2-4 Years
4-6 Years
More than 6 Years
By Cities
Taichung City
New Taipei City
Taoyuan City
Koahsiung City
Taipei
Tainan
Hsinchu
Others
By Price
Less Than NTD 150,000
NTD 150,000- NTD 250,000
NTD 250,000- NTD 550,000
NTD 550,000- NTD 750,000
More Than NTD 750,000
By Distance Driven
Less than 5,000 kms
5,000- 20,000 kms
20,000-50,000 kms
50,000- 80,000 kms
80,000- 120,000 kms
Above 120,000 kms
By Brand
Toyota (Lexus)
Mitsubishi
Honda
Nissan
Mercedes Benz
Mazda
Others
Key Target Audience:-
OEM’S Companies
Multi Brand Dealers
Captive Dealers
Venture Capitalist Firms
Government/ Regulatory Authorities
Online Auto-Classifieds
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2019F-2025F
Companies Covered:-
Major Online Players in Taiwan
8891.com
All Best Choice
Major Captive Dealers
Lexus Toyota
Jaguar Approved
Mitsubishi MPO
Ford Assured
Audi Approved Plus
Das Welt Auto
Land Rover
Porsche Approved
Multi-Brand Dealers
SUM
SAVE
Hot Car
Car OK
For more information, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
