South East Asia Used and New Cars Market Size, Share, Competitive Landscape and Trend Analysis Report, by Vehicle Type, Propulsion, Distribution Channel and Registration Type : Global Opportunity Analysis and Industry Forecast, 2024-2033

The South East Asia used and new cars market was valued at $205,807.60 million in 2023, and is projected to reach $471,490.6 million by 2033, growing at a CAGR of 8.9% from 2024 to 2033.

The Southeast Asia used and new cars market refers to the buying and selling activities involving both pre-owned and brand-new vehicles across countries in Southeast Asia. In Southeast Asia, brand-new vehicles from various manufacturers, both local and international, are sold in the market. The market also involves the trade of pre-owned vehicles. A used car is a second-hand vehicle that is available for resale. Various outlets such as franchise and independent car dealers, rental car companies, auctions, private party sales, and leasing offices sell used cars.

There is a lower rate of car ownership among millennials owing to high cost of vehicles and maintenance cost of personal cars. In addition, millennials are inclined toward cutting costs on cars, and thus majorly opt for used cars to travel. In addition, a lot of people are not able to buy new cars due to high cost, which boosts the sales of the used cars in the market. This also makes way for different investments by industry participants to establish their dealership network in the market.

Key Takeaways

• On the basis of vehicle type, the SUV segment held the largest share in the South East Asia used and new cars market in 2023.
• On the basis of propulsion, the ICE segment held the largest share in the South East Asia used and new cars market in 2023.
• By distribution channel, the franchised dealer segment held the largest share in the market in 2023.
• On the basis of registration type, the new car segment held the largest market share in 2023.
• By country, India held the largest share in the market in 2023.

E-commerce players have made use of digital transformation to increase their footprint in their respective markets. E-commerce breaks down geographic barriers for companies and allows sales in places that can be challenging to reach with traditional models, owing to which Southeast Asia used and new cars market players across the region are shifting their focus to online sales channels. Owing to all these factors, the growth of internet-based sales is expected to propel the demand for used cars during the forecast period. An important trend that is becoming increasingly popular in the used car industry is increasing investment from leading players and these players in the Southeast Asia used and new cars market are concentrating on boosting investments for company growth and fortifying their competitive position. South East Asia used and new cars market size is experiencing significant growth.

For instance, in June 2023, Trusty Cars Ltd., (Carro), the Singapore-based online used car platform, announced a strategic investment into Driven Communications, a Malaysian automobile content provider. Paultan.org, part of Driven Communications, is one of Malaysia's major independent automotive review websites, attracting up to 6 million organic monthly visits and consistently ranking as the nation's most visited automotive site. The unorganized car industry currently dominates C2C sales and has a sizeable portion of the market in most nations. It also lacks inventory. Unorganized companies have long dominated the secondhand car market in nations such as Mexico, India, China, and Brazil. South East Asia's used and new cars market size is expanding rapidly due to rising consumer demand and improved economic conditions in the region.

Contrary to these unorganized companies in developing nations, organized players offer free servicing and free towing at the dealership along with the growth of the used automobile industry in such nations. These services aid in bringing clients to their dealerships, thus fostering a relationship of trust between buyers and sellers. High new vehicle prices and affordability concerns, rise in demand for off-lease cars & subscription service by the franchise, leasing offices, and car dealers, and increasing investment by giant automakers in the market are the major factors that propel the Southeast Asia used and new cars market growth. However, unorganized used car sales and lack of regularization are the major factors that hamper the growth of the Southeast Asia used and new cars industry.

Furthermore, the advent of E-commerce and online technologies, a steady increase in organized/semi-organized sales in emerging countries, a surge in electric vehicle business across the globe, and demand for car-sharing services are the factors that are expected to offer growth opportunities for the market during the forecast period. The South East Asia used and new cars market forecast predicts continued expansion and innovation in the automotive sector.

The Southeast Asia used and new cars market is segmented on the basis of vehicle type, propulsion, distribution channel, registration type, and country. By vehicle type, it is divided into hatchback, sedan, and SUV. By propulsion, it is classified into ICE and electric & hybrid. Depending on distribution channel, it is categorized into franchised dealer, independent dealer, and peer-to-peer. By registration type, it is divided into new car and used car. Country-wise, the market is analyzed across India, Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, and rest of South East Asia. Some leading companies profiled in the report include Trusty Cars Ltd. (Carro), CARSOME Sdn Bhd, Cars24, Carousell, Olx Group, TKM (Toyota Trust), Philkotse.com, Valuedrive Technologies (Spinny), Big Boy Toyz, and Mahindra First Choice.

Segment Review

The South East Asia used and new cars market is segmented on the basis of vehicle type, propulsion, distribution channel, registration type, and country. By vehicle type, it is divided into hatchback, sedan, and SUV. By propulsion, it is classified into ICE and electric & hybrid. Depending on distribution channel, it is categorized into franchised dealer, independent dealer, and peer-to-peer. By registration type, it is divided into new car and used car. Country-wise, the market is analyzed across India, Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, and rest of South East Asia.

By Vehicle Type

On the basis of vehicle type, the SUV segment generated maximum revenue in 2023, owing to an increase in popularity of SUVs as the most demanding vehicles in the new and Southeast Asia used and new cars market. In addition, higher ground clearance, easy entry & exit, high engine power, off-road capabilities, improved visibility, and better safety are the key factors that drive the demand for SUVs in the market. SUV manufacturers have introduced new model such as Jaecoo J7 SUV in the Southeast Asia market to capitalize on the growing popularity of SUVs in the region. For instance, in February 2024, Jaecoo announced the launch of Jaecoo J7 SUV in Malaysia in 2024.

By Propulsion

On the basis of propulsion, the ICE segment generated maximum revenue in 2023, owing to its benefits such as low prices and higher availability in the market which drives the demand for ICE cars in the Southeast Asia used and new cars market. In addition, trends such as increase in use of e-commerce platforms for selling used cars and rise in demand for vehicle rental services contribute to higher demand for internal combustion engine (ICE) cars compared to electric cars in Southeast Asia used and new cars market.

By Distribution Channel

On the basis of distribution channel, the franchise dealer segment generated maximum revenue in 2023, owing to brand trust, immediate availability of vehicles, accessibility to a wide range of vehicles, and the availability of pre-owned certified vehicles. In addition, negotiable prices, test drives of multiple products, development of online infrastructure, and post-sales services are the key market trends for franchised dealers.

By Registration Type

On the basis of registration type, the new car segment generated maximum revenue in 2023, owing to increase in the demand for new cars in South East Asia is driven by several factors, including economic growth, rise in disposable incomes, and technological advancements in vehicle features. Consumers often opt for new cars due to warranties, the latest safety features, and lower maintenance costs as compared to used cars.

By Country

By country, India generated maximum revenue in 2023, owing to the factors such as affordability, improvement in online buying infrastructure, and lower tax rates on used cars as compared to new cars. Moreover, Indian companies are introducing new services and products to expand their business. For instance, in April 2024, Droom, marked its 10th Founding Day anniversary and unveiled a suite of innovative products aimed at transforming the pre-owned vehicle marketplace. These new offerings include MyDroom, AdReach, goDigital, and Chairman Club, designed to empower consumers, businesses, and dealerships with comprehensive solutions across the entire car ownership journey.

Competitive Analysis

The key players profiled in the South East Asia used and new cars market include Trusty Cars Ltd. (Carro), CARSOME Sdn Bhd, Cars24, Carousell, Olx Group, TKM (Toyota Trust), Philkotse.com, Valuedrive Technologies (Spinny), Big Boy Toyz, and Mahindra First Choice.

Rise in income levels and economic development

A comprehensive South East Asia used and new cars market analysis reveals key factors such as rise in disposable income driving the industry's growth. Rise in income levels and economic development significantly impact the new and Southeast Asia used and new cars market. According to the world bank, Vietnam’s GDP per capita surged from under $600 in 1986 to nearly $3,700 in less than 40 years, marking a six-fold increase. Poverty rates ($3.65/day, 2017 PPP) dropped significantly from 14% in 2010 to 4.2% in 2023. Economic growth is forecasted to rise to 5.5% in 2024, up from 5% in 2023, fueled by rise in global demand for goods and services and renewed domestic consumer confidence.

This economic growth translates into higher disposable incomes, allowing more individuals to afford vehicles. This growing number of middle-class individuals drives demand for both new and used cars, seeking personal transportation options that offer convenience and status. This economic growth also leads to improved infrastructure, which supports increased vehicle ownership and use.  Therefore, the South East Asia used and new cars market share has seen a steady increase over the past few years. Furthermore, the burgeoning middle class is particularly inclined towards purchasing new cars, while those with slightly lower incomes opt for high-quality used cars. The overall economic development not only boosts purchasing power but also increases consumer confidence, further fueling market growth. The South East Asia used and new cars market growth is projected to continue rising due to increased demand and economic expansion.

Rise in demand for off-lease cars & subscription service by the franchise, leasing offices, and car dealers

There is a significant South East Asia used and new cars market opportunity for investors and manufacturers. The rise in competition in the market and the threat of new entries are the factors that boost the growth of the used car dealership business. The reliable & add-on service/quality has changed the perspective of consumers toward the used vehicle business. In addition, franchised dealers with support from OEM involvement in certification and marketing programs, online inventory pooling, and access to high-quality contracts are in a strong position to benefit from the growth in the Southeast Asia used and new cars market. Moreover, there has been a rise in the demand for vehicle subscription services in the last few years which allows consumers to use a vehicle on a monthly basis by paying monthly fees, which include maintenance, insurance, and roadside assistance.

Furthermore, rapid change in technology or the introduction of new models of vehicles at short intervals allows customers to sell or exchange their old vehicle for a new vehicle. Such value money benefit has led to the rise in growth of the used car industry in the coming years. Furthermore, E-commerce players have made use of digital transformation to increase their footprint in their respective markets. E-commerce breaks down geographic barriers for companies and allows sales in places that can be challenging to reach with traditional models, owing to which the Southeast Asia used and new cars market players across the globe are shifting their focus to online sales channels. Owing to all these factors, the growth of sales is expected to propel the demand for used cars during the forecast period.

Unorganized used car sales

The unorganized players in the Southeast Asia used and new cars market limit the market growth. In countries such as India, Thailand, and Vietnam, the unorganized players hold the larger share in Southeast Asia used and new cars market. In addition, the unorganized players do not offer any warranty on pre-owned cars. Moreover, few sellers also perform malpractices such as re-painting and dent removal for accidental vehicles to hide their damage and get a false inflated value, which creates fear among the buyers for buying used cars. Therefore, higher rate of malpractices and hold of the larger share of the market by unorganized dealers creates a threat for the growth of Southeast Asia used and new cars market. Thus, unorganized players are creating a threat to Southeast Asia used and new cars market.

Lack of Regularization

The used car dealer is dependent on the seller because the dealer does not get cars to cater to their customers unless owner does not sell it in the market. If the sales of new cars decrease, the market will be short of supply after some time. Further, pandemic has placed the automotive industry at great disruption. In the aftermath of the pandemic, the consumers are expected to prefer private conveyance. Therefore, Southeast Asia used and new cars market is completely dependent on the replacement buyer, car owner to sell their vehicle, and used car import that creates lots of uncertainty in terms of getting supply to cater to the market demand. Thus, these factors are expected to hinder the growth of the Southeast Asia used and new cars market in the near future.

Advent of E-commerce and online technologies

Recent South East Asia used and new cars market trends indicate a shift towards more environmentally friendly vehicles, and advanced technologies. Advancements in technology such as the development of the internet, use of e-commerce sites/applications to boost the demand for business, and introduction of hybrid and the electric vehicle has changed the buyer position in the market. With the help of online technologies, consumers are becoming knowledgeable about the vehicle, its residual value, third party profit margin and others. Moreover, rapid urbanization, surge in internet connectivity, and developments in the telecom sector have allowed for a much-better information flow for people. These factors are being rapidly used by used car owners to advertise their vehicles and spread the details about them. This online platform has smoothly increased the sales process and enables more stakeholders to sell and buy cars. The supply side of this market has more weightage than the demand side and transparency through knowledge has changed the dynamics and managed to turn customer intelligence to their advantage, thereby increasing the demand for used cars in the future.

Recent Developments in the South East Asia Used and New Cars Industry

In November 2023, CARSOME Sdn Bhd expanded its business in the Southeast Asia market at an estimated $270,000 million by 2025. Furthermore, CARSOME leveraged digitalization to provide more transparent pricing and better customer experience by developing infrastructure such as experience and inspection centers in global market.

In September 2023, Carousell opened a new regional headquarters in Singapore, named as LaunchPad one-north. This strategy brings various subsidiaries together in one location and integrates its capabilities for authenticating and inspecting products.

In November 2022, Big Boy Toyz opened a new showroom in Ahmedabad, India. The key highlight of the showroom is to provide sales, service, and spare parts for luxury cars, making it a one-stop destination for all luxury sports car lovers.

In May 2022, Carousell launched Carousel Online, an e-commerce platform for buying and selling pre-owned vehicles. This online platform is redefining the pre-owned vehicle-buying experience by putting the driver before everything else. The buying process is completely digital, using vehicle transparency through 360-degree virtual tours, sharing detailed vehicle information, and providing concierge product experts right at the buyer's fingertips.

In August 2021, Mahindra First Choice opened 75 new franchise stores across India to expand used car business of Mahindra and Mahindra. Though this expansion, Mahindra First Choice has a strong network of more than 1,100 outlets & it sells its used cars through an omnichannel mode.

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the South East Asia used and new cars market analysis from 2022 to 2032 to identify the prevailing South East Asia used and new cars market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the South East Asia used and new cars market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as market trends, key players, market segments, application areas, and market growth strategies.

  South East Asia Used and New Cars Market Report Highlights