Growth of Online Platforms: The last decade has witnessed the entry of various online auto classified platforms in the country such as Mobil123, OLX Autos, Carsome, Carro, and more. The internet penetration in Indonesia stood at ~73% in 2019, highlighting the growing presence of consumers online. The majority of the leads for offline dealerships were also observed to be generated online. The traction towards online platforms has led to brands & local dealerships partnering with these platforms to list their used car inventory online.
Concentration of Sales in Jakarta: The majority of the used car transactions were concentrated in Jakarta, the region being home to a large urban population. The province also had the highest passenger car ownership in the country with 405 cars for every 1,000 individuals, way above the national average of 69 cars per 1,000 persons. Many multi-brand, as well as OEM-certified dealerships, also have multiple showrooms spread over the region.
Traction towards Family Cars: Large-sized family cars or MPVs dominate the used car industry in Indonesia. Toyota Innova & Avanza, Daihatsu Xenia, Honda Mobilio, Suzuki Ertiga were observed to be some of the best-selling models. In major tier-1 cities, the demand for small city-cars or hatchbacks such as Toyota Agya, Honda Jazz & Brio, and Daihatsu Ayla among others is also increasing due to the shift towards nuclear families.
Impact of COVID-19 on Used Car Sales: COVID-19 has severely impacted the automotive industry in Indonesia. The number of new cars sold in the country in 2020 reached 528 thousand, a decline of over 44%. The used car industry also witnessed a similar downfall in sales due to the lockdown and social distancing norms imposed during the beginning of the pandemic. ~68% of the used car showrooms remained shut or were open only on an appointment basis from May to June 2020. Used car inventory with dealers as well as prices also dwindled during the period. However, towards the end of the year sales, started to recover with some dealers reporting 80-90% of the normal sales level. Easy availability of used car loans and higher prices of new cars are expected to lead to the recovery of the industry in 2021.
Analysts at Ken Research in their latest publication “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)” observed that the used cars market in Indonesia witnessed improvement in the used to new car sales ratio over the period 2014-2020. Increasing value-added service offerings, the rising presence of online classified platforms and marketplaces as well a large number of financing companies offering credit for used cars are contributing to the industry’s growth. The Used Car Industry in Indonesia is expected to grow at a CAGR of ~15.7% on the basis of gross transaction value and ~14.2% on the basis of sales volume over the forecast period 2020-2025.
Key Segments Covered: –
Indonesia Used Car Market (On the basis of GTV)
Indonesia Used Car Market (On the basis of Sales Volume)
Indonesia Used Car Market Segmentation (On the basis of Sales Volume)
By Market Structure (On the basis of Sales Volume & GTV)
Organized
Unorganized
By Type of Car
MPVs
Hatchbacks
SUVs
Others
By Brand
Toyota
Honda
Daihatsu
Suzuki
Others
By Vehicle Age
Less than 1 year
1-3 years
3-5 years
5-8 years
More than 8 years
By Mileage
Less than 20,000 Km
20,000-50,000 Km
50,000-80,000 Km
80,000-120,000 Km
More than 120,000 Km
By Regions
DKI Jakarta
East Java
West & Central Java
North Sumatera
Others
By Age Group of Buyers
18-30 Years
30-50 Years
More than 50 Years
Organized Used Car Market
By Sales Channel
Multi-brand Showrooms
OEM-Certified/Authorized Dealership Outlets
Unorganized Used Car Market
By Sales Channel
Customer to Customer (C2C)
Local Dealerships
Dealerships Covered
Mobil88
Toyota Trust (PT Astra Auto Trust)
Hyundai Auto Safe (PT Hyundai Mobil Indonesia)
Suzuki Auto Value (PT Suzuki Indomobil)
Diamond Smart Auto (PT Mitsubishi Motors Krama Yudha Sales Indonesia)
PT Tunas Ridean Tbk
Online Auto-Classifieds/Platforms Covered
OLX Indonesia
Mobil123
Carmudi
Oto.com
Carsome
Carro
Key Target Audience
Car Dealerships
Car Manufacturers
Car-Rental and Leasing Companies
Online Auto Classified Companies
Industry Associations
Regulatory Bodies
Used Car Auction Companies
Banks & NBFCs
Time Period Captured in the Report:-
Historical Period: 2014-2020
Forecast Period: 2021-2025
Key Topics Covered in the Report: –
Macroeconomic Overview and Overall Automotive Demand in Indonesia
Overview and Genesis of Indonesia Used Car Industry
Trends and Growth Drivers in the Industry and Challenges Faced
Indonesia Used Car Market Size and Segmentations, 2014 – 2020
Ecosystem and Value Chain of Used Car Industry
Customer Decision Making Parameters & Brand Perception Mapping
Cross Comparisons between Major Authorized Dealerships and Online Auto-Classifieds/Platforms and Company Profiles
Future Market Size and Segmentations, 2020-2025F
Covid-19 Impact on the Industry, the Way Forward & Upcoming Online Business Models
Analyst’s Recommendations
For More Information on the research report, refer to below link: –
Future of Indonesia Used Car Market
Related Reports by Ken Research: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
