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” provides a comprehensive analysis of the Used Vehicle market in Taiwan. The report also covers the overview and genesis, market size in terms of gross transaction value and sales volume, business models, trends and developments, issues and challenges, regulations in Taiwan. The report provides value chain and SWOT analysis, buying decision parameters, competitive scenario and company profiles. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Taiwan Used Vehicle Market Overview and Size
Taiwan Used Vehicle market in terms of sales volume increased at a single digit CAGR over the review period 2013-2018. The market was observed to be at the late growth stage owing to increasing competition in the market which allows offering of varied models of vehicles at lower prices, faster vehicle replacement rate, easy import procedures, and relatively stable average ticket prices. In Taiwan, people prefer buying used vehicles due to its increased affordability and a wide range of offerings at an affordable price point.
Taiwanese government has also adopted certain strategies such as the “Scrappage Program” to promote discard of vehicles which are older than 6 years. The Government awarded a rebate of NTD 50,000 against purchase of new vehicle against discarding of used vehicle. This has led to intensive competition in the used car market as new car sales are growing at a faster pace vis a viz used car.
Taiwan Used Vehicle Market Segmentation
By Distribution Channel: In Taiwan, used vehicles are largely being sold through organized and unorganized market. Organized market dominates in terms of sales volume largely due to rising demand of multi-brand and captive dealers in the market. There are approximately 4000 organized dealers in Taiwan. On the other hand, unorganized dealers are slowly losing market share due to lack of trust in consumers’ mind while purchasing through an unorganized dealership.
By Type of Vehicle: Sedans accounted for highest market share in 2018. Sedans remained the most popular car type as they are perceived as conferring a higher social status. SUV’s accounted the second highest market share followed by Hatchbacks and Multi-Purpose Vehicle (MPV’s), Light Commercial Vehicles (LCVs) and others.
By Vehicle Age: Used cars under the age bracket of 2-4 years accounted for highest market share in 2018 due to the average ownership period of 3.4 years in Taiwan. The sale of used cars is followed by 0-2 years of vehicle age as these cars have heavy body type, better engine capacity (high horse power) and have high re-sale value.
By Cities: High population and developed infrastructure, Taichung City, New Taipei City and Taoyuan City accounted for the highest share in terms of sales volume in 2018. Kaohsiung City, Taipei and Tainan along with other cities contributed the remaining share in total sales volume of used Vehicles in the country.
By Price Range: The average ticket size of used cars in Taiwan is growing over the years. The price range of NTD 250,000– NTD 550,000 accounted for highest percentage share due the faster replacement rate along with the depreciation charged over the years on new vehicles.
By Distance Driven: The preferred mileage of the used car in Taiwan is 45,000 kilometers. Vehicles with the mileage in the range of 20,000-50,000 Kilometers accounted highest market share followed by the range of 50,000-80,000 Kilometers, 80,000 – 120,000 Kilometers and others in the year 2018.
By Brand: Japanese brands are the most preferred brands in Vietnam due to their strong brand preference, reliability, longer life span, and higher re-sale value of the used cars. Toyota dominated the market by accounting highest market share followed by Mitsubishi, Honda and Nissan in terms of sales volume. Other brands such as Mercedes Benz, Mazda and Ford captured the remaining market share of used cars sales volume in 2018.
Competitive Landscape
Used Vehicle market in Taiwan is fragmented with presence of more than 7,000 organized and unorganized dealers across all the cities in Taiwan. Organized dealers include Multi Brand Dealership Outlets (SUM, SAVE, Car OK, Easy Car) and captive dealers such as Lexus CPO, Jaguar Approved, Ford Assured, Mitsubishi MPO and Honda. Online Auto-Classifieds Market has recognized the presence of 2 major players in the market such as 8891.com and All Best Choice.
Taiwan Used Car Market Future Outlook
In future, it is anticipated that used Vehicle sales volume will be fuelled by the initiatives taken up by the government such as scrapping or export of old vehicles, growing middle class population, increasing disposable income, faster car replacement rate and growing customer confidence coupled with increasing alliances between organized dealers of a used vehicles and rising average ticket size of a used vehicle over the years.
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
Key Topics Covered in the Report:-
Taiwan Used Vehicle Market Overview and Genesis (Overview and Genesis, Business Cycle Graph)
Taiwan Used Vehicle Market Value Chain Analysis
Taiwan Used Vehicle Market Business Model
Used Vehicle Market Size Taiwan
Taiwan Used Vehicle Market Segmentation
Ownership Transfer of Registration Certificate
Buying Decision Parameters in Taiwan Used Vehicle Market
Trends and Developments in Taiwan Used Vehicle Market
Issues and Challenges in Taiwan Used Vehicle Market
Taiwan Used Vehicle Market Regulations
SWOT Analysis Taiwan Used Vehicle
Taiwan Used Vehicle Market Competition Scenario
Taiwan Used Vehicle Market Future Projection, 2018-2025F
Future Outlook of Taiwan Used Vehicle Market Segmentations, 2018-2025F
Analyst Recommendations
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