- A new trend witnessed in the used car industry in Indonesia is the increased number of listings by dealers and customers on online platforms
- The new-to-used car ratio is expected to increase up to 2021 and then take a fall by the year ending 2023 owing to entry of electric car variants which will limit the growth of used cars in the country
- Lucrative interest rates are being offered by financial institutions to attract individuals towards procuring loan financing options for purchase of used cars resulting to an increase in sales of used cars
GURUGRAM, India, June 12, 2019 /PRNewswire/ -- Surge in Smartphone Users: The rise in internet and mobile penetration has incentivized dealers to use online classified platform as it gives them the ability to reach a larger audience. It has been observed that majority of the total car dealers in Indonesia are highly focused towards online advertising of their used vehicles in the year 2018. Additionally, social media is also a medium being explored by many individuals and car dealers. Among social media platforms, Facebook and Instagram are the most prominent to advertise their car list and connect with potential buyers.
Government Regulations: In Indonesia, the total number of used car units sold per new car is expected to grow from 2018 to 2021. The Indonesian government was witnessed to launch a regulation stating that "no vehicle can be re-registered after an average ownership period of 10 years" which will create a positive impact on the vehicle quality thereby, augmenting the sale of both new as well as used cars in the near future. In addition to that, emergence of online auto classified portals coupled with strict / stringent quality / inspection checks performed by these portals will help in gaining back consumer confidence towards online transactions thus, influencing consumers to purchase more cars via online portals. Apart from that, rising working class population in the country is also anticipated to create a positive impact on the used car market over long term. However, the new-to-used car ratio is expected to take a fall by the year ending 2023 owing to entry of electric car variants which will limit the growth of used cars in the country.
Interest Rate Structure: Individuals who cannot afford to pay the full price of used car generally require loan financing from both public and private banks. Majority of the banks such as AB Sinarmas Multifinance, KKB Astrido Finance, Mega OTO (Kredit Pemilikan Mobil)-Arrear, Bank BRI, KKB Astrido Finance and others offer competitive interest rate for cars that are five years old or less while certain private banks offer used car loans to individuals for cars that are older than five years. The interest rates provided by these institutions vary on the basis of loan amount, car type, age of the car, model, loan tenure and location of the borrower.
Analysts at Ken Research in their latest publication "Indonesia Used Car Market Outlook to 2023 - Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales" believe that expansion in tier-2 and tier-3 cities will create a positive impact on Indonesia used car market. The market is expected to register a positive CAGR of 8.5% in terms of Gross Transaction Value during the forecast period 2018-2023E.
Key Segments Covered
- Market Structure
- Distribution Channel
- Unorganized and Organized lead generation source
- Type of used cars
- Sales by major cities
- Type of Used passenger cars
- Kilometers driven
- Year of manufacture
- Fuel Type
Key Target Audience
- Automobile Companies
- OEM certified companies
- Online Classifieds
- Multi Brand Organized Car Dealers
Time Period Captured in the Report:
- Historical Period - 2013-2018
- Forecast Period - 2019-2023
- Multi-brand Dealerships( Mobil88, Andre Motors, Auto2000,Tunas,Sun Star motors and others)
- OEM Certified Dealerships( Toyota Trust, Hyundai Autosafe, Mercedes certified, BMW premium select)
- Online auto portals( OLX, Mobil123, Carmudi, Mobil88,OTO others)
For more information on the research report, refer to below link:
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Ankur Gupta, Head Marketing
Ken Research Private Limited