Philippines Used Car Market showcased resilience during the pandemic as the sales recovered quickly due to a surge in the demand for cars owing to the risk of using public transportation: Ken Research

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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 Carmudi, AutoDeal, Carousell, and Philkotse were gaining traction for quite some time, the pandemic made it absolutely necessary for most of the dealers to have an online presence. Approximately 80% of the lead generation for used cars in the year 2020, happened via the online platforms. Several brands introduced the concept of virtual showrooms to promote minimum contact and social distancing between buyers and sellers.

Preference to Own a Personal Car over using Public Transportation:  Since the onset of the pandemic, public transport and ride sharing are no longer considered to be a safe option. Therefore, a number of individuals who used to travel by public mode of transportation have started preferring to own a private car. Since buying a brand-new car is somewhat expensive, this population demographic has started looking into the used cars segment.

Platform Economy Carving a Niche in the Used Cars Segment: The Used Cars segment (specifically the online classifieds market) has transformed into a platform economy. Buyers and sellers of used cars do not have to look for an intermediary but can directly connect with each other on the classified platforms.

Impact on Used Car Sales due to Covid-19: Multiple trends in the used cars industry were observed since the onset of Covid-19.  Although, the used car market witnessed significant reduction in sales (similar to the new car market) in 2020 during the months of March, April and May, it was on the upswing once the lockdown was lifted. The increase in the sales in the following months was somewhat able to mitigate for the losses incurred during the months having complete nationwide lockdown (March to May 2020).

Increased Financing Facilities: Although a finance crunch was observed during Covid, the financing facilities had been historically growing for the used cars segment. Several foreign financing companies leveraged the vacuum in this space, following which, a number of local banks entered the finance segment of the used cars industry.

Analysts at Ken Research in their latest publication Philippines Used Car Market Outlook To 2025 (Second edition): The Pandemic Incited Increased Demand for Used Cars coupled with Increased Internet Penetration provides for Resilience in the Used Cars Market during the Economic Crisis–” observed that Philippines used car market is in a growth and is gradually recovering from the economic crisis after the pandemic. The increasing credit appetite of banks fueled by competition from foreign financing companies is giving a boost to the used car industry of Philippines. The industry is expected to demonstrate a moderated growth in the short-medium term fueled by growth of online used car platforms that provide convenience to both buyers and sellers.

Key Segments Covered: –

By Market Structure

Organized

Unorganized

By Sales Channel

Multi-brand Dealers

Direct Dealership Sales Agents

Bank Auctions

C2C (Customer to Customer) Transactions

By Source of Lead generation

Online

Dealership walk-ins

By Car Segment

Sedan

Hatchback

SUV

MPV

Pickup Vans

Others (convertibles, coupe, crossover, sports vehicles, and many more)

By Price

Less than PHP 100,000

PHP 100,000-300,000

PHP 300,000-500,000

PHP 500,000-700,000

PHP 700,000-1,000,000

More than PHP 1,000,000

By Brand

Toyota

Mitsubishi

Hyundai

Ford

Nissan

Honda

Isuzu

Suzuki

Others (Kia, Mazda, Mercedes, Audi, and many more)

By Region

Metro Manila

Northern Luzon

Southern Luzon (except Metro Manila)

Visayas

Mindanao

By Ownership period

Less than 2 years

2-4 years

4-6 years

6-8 years

More than 8 years

By Mileage

Less than 10,000 Kms

10,000-20,000 Kms

20,000-50,000 Kms

50,000-75,000 Kms

75,000-100,000 Kms

Above 100,000 Kms

By Fuel

Petrol

Diesel

Others (Hybrid and Electric)

Companies Covered

OEM Dealerships

Toyota Certified

Nissan Intelligent Choice

BMW Premium Selection

Mercedes Benz Certified Pre-owned

Banks (Repossessed Car Auctions)

EastWest Bank

Security Bank

BDO Unibank

Online Portals – Online Auto Classified Platforms

Carmudi

Carousell

AutoDeal

Automart

Zigwheels

Philkotse

Multi-Brand Dealers

Carmax

Carmix (by Lausgroup)

Automobilico

All Cars

Five Aces

Berylle Car Sales

Time Period Captured in the Report: –

Historical Period – 2015-2020

Forecast Period – 2021-2025

Key Topics Covered in the Report

Philippines Used Car Market Overview

Philippines Used Car Market Size, 2015-2020

Philippines Used Car Market Segmentation, 2020

Growth Drivers in Philippines Used Car Market

Issues and Challenges in Philippines Used Car Market

Government Regulations

Ecosystem and Value Chain of Used Car Industry in Philippines

Customers Purchase Decision Making Parameters

Cross Comparison between Major OEMs and Multi-brand Dealers and Company Profiles & Product Portfolios

Snapshot on Online used car market

Future Market Size and Segmentations, 2020-2025E

Covid-19 Impact on the Industry & the way forward

Pricing Analysis (By Age, Mileage, Brand and Car type)

Depreciation Calculation Tool

Analyst Recommendations

For More Information on the research report, refer to below link: –

Philippines Used Car Market Future Growth

Related Reports by Ken Research: –

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)”

Saudi Arabia Used Car Market Outlook To 2025- By Market Structure (Organized & Unorganized), By Type Of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-Ups And Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford And Others), By Type Of Sourcing, By Age Of Vehicle (Less Than 1 Year, 1-3 Years, 3-5 Years & More Than 5 Years), By Kilometers Driven (Less Than 50,000 Km, 50,000-80,000 Km, 80,000-120,000 Km & More Than 120,000 Km) And By Region (Northern, Southern, Central, Eastern And Western)”

Philippines Auto Finance Market Outlook To 2024- Growing Prominence Of Captive Finance And Surge In Used Car Sales Supporting Disbursement For Auto Loans”

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249

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