Increasing Online Presence: The year 2020 saw a tremendous increase in the usage of the online space for buying and selling cars. Although online classified platforms such as Encar and Kb Cha Cha Cha were gaining traction for quite some time, the pandemic made it absolutely necessary for most of the dealers to have an online presence. More than 60% of the lead generation for used cars in the year 2021, happened via the online platforms. Several brands introduced the concept of virtual showrooms to promote minimum contact and social distancing between buyers and sellers.
Impact on Used Car Sales due to Covid-19: Multiple trends in the used cars industry were observed since the onset of Covid-19. Both new and used car sales were witnessing negative growth rates in 2018 and 2019. The pandemic led to an increase in the sales of cars – both new and used, which led to positive growth rates in used car sales. Sales of used cars picked up from March as people were avoiding public transport. Consequently, buying second hand car was the most economical and safe option.
Increasing Demand for Cars with Quality Assurance: Certified used cars have a special system of certification which is difficult to obtain by used car dealers. The system allows only a limited number of businesses and consumers to purchase certified cars. However, activation of quality assurance is encouraging the expansion and revitalization of the entire used car market. Dealers and Dealerships are focusing on offering reasonable assurance and warranty that their cars conform to the quality standards set by them.
High Customer to Customer Transactions Facilitating Growth of Online Classifieds: The used car segment has transformed into a platform economy with the assistance from online classifieds. Buyers and sellers of used cars can directly connect with each other on the classified platforms or through social networking sites, without the need to look for an intermediary. In overseas markets such as the United States and Germany, the proportion of direct sales of used cars between individuals is significantly lower than in South Korea. This provides an opportunity for Online Classifieds and Transaction Portals to capture the market.
Increased Facilities Offered by Online Platforms: Many online classifieds are enabling sellers to sell their cars directly to dealers through online bidding, reducing the lead time for sellers who want to sell urgently. Furthermore, companies are trying to increase their sourcing channels for the purchase of vehicles to sell them at a lesser cost. Value-Added Services such as financing options, leasing, renting and providing after sales is still in infancy stage but has seen an acceleration in adoption due to Covid-19.
Analysts at Ken Research in their latest publication “South Korea Used Car Market Outlook To 2026: Relaxed Government Regulations on Big Companies Entering Used Car Market to Facilitate Increase in the Used Cars Sales and Improve the Organized Market Share” observed that South Korea is in a maturity phase in the used car market in South East Asia and is gradually recovering from the economic crisis after the pandemic. The increasing E-Commerce penetration is giving a boost to this industry. Going forward, the industry is expected to demonstrate further growth in the short-medium term fueled by the growth of online used car platforms that provide convenience to both buyers and sellers. South Korea Used Car Market is expected to grow at a CAGR of 1% on the basis of sales volume over the forecast period 2021P – 2026F.
Key Segments Covered
- By Market Structure
- Organized
- Unorganized
- By Organized Channel Source of Lead generation
- Online
- Dealership walk-ins
- By Sales Channel
- B2C
- C2C
- By Type of Car
- Luxury Sedan
- Sedan
- Hatchback
- SUV
- MPV
- Others (Sports car, Station wagon)
- By Engine Size
- 2000 CC and Below
- 2000 CC – 3000 CC
- 3000 CC – 4000 CC
- 4000 CC and Above
- By Brand
- Hyundai
- Kia
- GM Korea
- Renault Samsung
- Ssangyong
- Benz
- BMW
- Genesis
- Audi
- Volkswagen
- Others (Includes both domestic and international brands)
- By Region
- Gyeonggi
- Seoul
- Gyeongnam
- Gyeongbuk
- Incheon
- Busan
- Chungnam
- Dae-Gu
- Jeonnam
- Jeonbuk
- Chungbuk
- Gangwon
- Gwangju
- Daejeon
- Ulsan
- Jeju
- Sejong
- By Age
- 0-2 Years
- 2-4 Years
- 4-6 Years
- 6-8 Years
- 8-10 Years
- More than 10 Years
- By Mileage
- Less than 20,000
- 20,000 – 40,000 Km
- 40,000 – 60,00 Km
- 60,000 – 80,000 Km
- 80,000 – 100,000 Km
- Over 100,00 Km
- By Fuel
- Petrol
- Diesel
- Electric
- Others (Petro-Electric, Diesel-Electric, etc.)
- By Transmission Type
- Auto
- Manual
- Others (Semi-Auto, CVT)
Companies Covered
- Authorized Dealers
- Benz Hansung
- BMW Deutsch Motor
- BMW Bavarian Motors
- KCC Auto.
- C2B/C2B2C/B2C
- K-Cars
- Aj SellCar
- Autohands
- Hey Dealer
- U-Car
- Autoplus
- Online Portals – Online Auto Classified Platforms
- Encar
- Kb Cha Cha Cha
- Auction Players
- Hyundai Glovis
- Lotte Rental – Auction
- Aj SellCar Auction
- K Car Auction
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Time Period Captured in the Report:-
- Historical Period – 2015 – 2021P
- Forecast Period – 2021P – 2026F
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- South Korea Used Car Market Overview
- South Korea Used Car Market Size, 2015-2021P
- South Korea Used Car Market Segmentation, 2021P
- Growth Drivers in South Korea Used Car Market
- Issues and Challenges in South Korea Used Car Market
- Government Regulations
- Ecosystem and Value Chain of Used Car Industry in South Korea
- Customers Purchase Decision Making Parameters
- Cross Comparison between Major Authorized Dealers and Multi-brand Dealers
- Snapshot on Online used car market
- Future Market Size and Segmentations, 2021P – 2026F
- Covid-19 Impact on the Industry & the way forward
- Analysts’ Recommendations
For more information on the research report, refer to below link:
South Korea Used Car Market Growth Rate, Trends and Revenue to 2026
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Ankur Gupta, Head Marketing & Communications
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