- The increasing prominence of online classified and auto portals in the Philippines has started impacting the buying behavior of customers in the used car market. The advent of digital technology has given varied domains to the customers, which they can explore to find the most suitable car for themselves.
- The multi-brand dealers and banks are strategically partnering with online classifieds and online auto portals to make the car buying process more accessible and transparent for the buyers. Also, the banks have started collaborating with websites such as Auto Deal for pre-owned and new vehicle financing.
Growth Enablers: Growth in the Philippines used car market in future will be facilitated by simplified documentation & licensing processes, penetration of online sales channel, pivot towards certified cars due to change in the customer purchase funnel, more volumes of repossessed car auction, robust after-sale services, entry of new players, expanding geographical presence of major players, improvements in technology and new marketing strategies and product stream diversification. These improvements should expand the number of pre-owned personal and commercial vehicles purchased, thereby growing the market.
Government Push: The Tax Reform for Acceleration and Inclusion (TRAIN) Act in the Philippines has made new vehicles more expensive because of which individuals have resorted to certified and non-certified pre-owned vehicles. The planned highways and road improvements by the government are estimated to ease the congestion in the country and provide better and wider roads. The focus on public transport and ride-sharing services to combat the traffic will also expand the used car sales in the Philippines.
Increasing Prominence of Online Sales Channel: The online space is expected to increase the volume of used cars traded. Social media websites such as Facebook and Instagram have played important roles for individuals, multi-brand dealers and the DDSA’s to list the fleet of a vehicle in stock for free or negligible cost. The promotion fees/ fees to boost the target audience on social media are way lower than the listing fees charged by the online auto portals or classified pages in the Philippines.
Ken Research in its latest study “Philippines Used Car Market Outlook to 2023- by Market Structure (Organized and Unorganized Market), by Origin of Sale (Direct Dealership Sales Agent, Repossessed Units Sold By Banks and Multi-Brand Dealers), By Sales Channel (Online and Dealership Walk-ins), by Average Vehicle Replacement Period and by Major Car Manufacturer Brands” suggests a five-year CAGR of around 5.7% on the basis of the volume of used car sales for the time period 2019-2023 due to introduction of TRAIN tax on new vehicles and rising inflation in the country.
For More Information on the market research report, please refer to the link below:-
Key Segments Covered:-
Philippines Used Car Market Overview and Size
By Type of Market Structure
Organized Market
Unorganized Market
By Type of Sales Origin (Organized Market)
Direct Dealership Sales Agent
Repossessed Units Sold By Banks
Multi Brand Dealers
By Type of Sales Channel (Organized Market)
Online Platforms
Dealership Walk-ins
By Average Ticket Size of Used Vehicle
By Average Vehicle Replacement Period
By Type of Vehicle Manufacturer/Brand
Japanese Brands
German Brands
American Brands
Korean Brands
Other European Brands
British Brands
Others
Key Target Audience
Potential Direct Dealership Sales Agents
Existing Multi-Brand Dealerships
Banks & Subsidiaries
Captive Finance Companies
Non-Banking Financial Institutions
Cab Aggregators and Car Rental Companies
Government Organizations
Online Auto Portals
Classified Pages
Investors and VC Firms
Industry Associations
Time Period Captured in the Report:
Financial Year 2014-2018: Historical Period
Financial Year 2019-2023: Future Forecast
Companies Cited in the Report:
Brand
Toyota
Nissan
Hyundai
Honda
Mitsubishi
Ford
DDSA
Toyota Certified
Honda Philippines
Nissan Intelligent Choice
Hyundai Philippines
Mitsubishi Certified
Banks
BDO
PS Bank
BPI
East-West Bank
China Bank
RCBC
May Bank
Sterling Bank
Security Bank
Classified Pages/ Online Auto Portal
Phil Kotse.com
OLX
Auto Deal.com
Carmudi Philippines
Key Topics Covered in the Report:-
Philippines Used Car Market Overview
Philippines Used Car Market Size on the Basis of Value, 2014–2018
Philippines Used Car Market Size on the Basis of Volume of Used Cars Sold, 2014–2018
Philippines Used Car Market Segmentation by Market Structure (Organized and Unorganized)
Philippines Used Car Market Segmentation by Sales Channel (Online Vs Offline)
Philippines Used Car Market by Origin of Sale (DDSA, Banks Repossessed Car Auctions and Multi-Brand Dealers)
Revenue Model of Key Classified Pages and Online Auto Portals
Strengths and Weaknesses of Major Players in the Philippines Used Car Market
Company Profile of Major Players in the Philippines Used Car Market
Future Outlook and Projections in Philippines Used Car Market (2019-2023)
Analyst Recommendations
Related Reports by Ken Research:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
