Growth of Used Car Industry in Indonesia: Ken ResearchPosted by kenresearch on February 17th, 2021 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. 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: 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 appointment basis during 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 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, rising presence of online classified platforms and marketplaces as well as 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 Segmentations (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 Contact Us: - Ken Research Like it? 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