Indonesia Used Car Market Outlook to 2025

The report titled “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)”provides a comprehensive analysis on the status of the used car industry in Indonesia. The report covers various aspects including the current sales volume & gross transaction value, passenger car ownership in the country, growth facilitators, issues & challenges faced by the industry, and more. Indonesia Used Car Market report concludes with projections for the future of the industry including forecasted sales volume & GTV by 2025, future market segmentation, Covid-19 impact, emerging online used car models, an international case study, and analyst’s take on the future.

Indonesia Used Car Market Overview and Size

The Used Car industry in Indonesia has grown at a CAGR of 4.5% on the basis of gross transaction value over the period 2014-2019 and at a CAGR of 2.0% on the basis of sales volume. The overall economic slowdown, as well as the slowdown of the automotive industry due to a reduction in purchasing power of consumers, contributed to the decline in sales during 2016-2017. The entry of various financing companies in the used car industry, as well as the launch of OEM-certified used car programs, has been the major growth drivers of the industry. The boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.

Indonesia Used Car Market Segmentations

By Market Structure: The industry in Indonesia is largely unorganized due to the preference of consumers towards standalone local, independent dealers or the ones located in used car exchanges, along with peer-to-peer sales, facilitated by online auto-classified platforms. The organized market comprises large multi-brand as well as OEM-certified dealerships.

By Type of Cars: Multi-Purpose Vehicles or MPVs were observed to dominate the used car market on the basis of sales volume as they are suitable for large-sized families. Hatchbacks were found to be the second most preferred type of cars in the country as they are popular as city cars among individuals in tier-1 & some tier-2 cities.

By Brand: Toyota continues to dominate the used car market in Indonesia due to the inclination of the consumers towards the brand. The easy availability of spare parts and a higher residual value of Toyota cars contribute to the higher sales. Honda contributed the second-highest sales volume in 2020.  

By Vehicle Age: Five to eight years old cars were observed to dominate the used car sales in the country in 2020. 3-5-year-old vehicles contributed the second-highest sales volume. The average car ownership period in the country ranges between 3-7 years which leads to many cars following in that age group finding their way to the used car market. Many financing companies also offer loans on cars that are up to 5-6 years old.

By Mileage/Kilometers Driven: A large proportion of the used cars sold in 2020 belonged to the category of 50,000-80,000 kilometers. Cars with a mileage of 20,000-50,000 kilometers were also largely preferred by the consumers due to their nearly new look and feel and are also economical. Cars with mileage more than 80,000 kilometers also account for a significant proportion of the used car sales as MPVs usually have a longer useful life and mileage.

By Regions: DKI Jakarta accounted for the highest number of used car sales in the country in 2019 due to the concentration of young working individuals and the urban population in the region. It is one of the most populous regions in the country with the highest passenger car ownership ratio of 405 cars per 1,000 individuals. East Java contributed the second-highest used car sales. Many multi-brand dealers and used car exchanges are located in this region.

By Customer Profile basis Age Group: The majority of the buyers in the used car market were observed to be in the age group 30-50 years. Many young working professionals, families owning multiple cars belong to this age group. The demand for used cars among the age group of 18-30 is also increasing with demand from students and individuals without large families.

Further Segmentation of Organized Market by Sales Channel: The multi-brand dealerships contributed a majority of the sales through the organized channel in the country. These outlets are spread all across the country and are a convenient way of buying a used car with a large inventory and variety of choices at the disposal of the consumer.

Further Segmentation of Unorganized Market by Sales Channel: The majority of the sales through the unorganized channel were identified to have taken place directly between local, independent dealerships that are spread all across the country. The rise of online platforms has also made C2C transactions more convenient and the easy availability of finance is also a contributing factor.

Competitive Landscape of Indonesia Market

The industry is highly fragmented and competitive with >8,000 dealerships operating in the market. Many brands such as Toyota, Hyundai, Suzuki, Mitsubishi, BMW, and Mercedes among others have a certified pre-owned car program in place in the country. Amongst the multi-brand dealerships, Mobill88 was observed to be the largest dealer with 21 branches across the country.  These OEM-certified & multi-brand dealers compete on the basis of parameters such as geographical presence, value-added services offered, financing partners, online presence, after-sales services offered, dealership network, and more.

Indonesia Online Used Car Market

The used car market has witnessed the entry of various online classified portals and marketplaces in recent years. These players follow various different business models and aim to harness the untapped potential of the industry. On the basis of a number of used car listings, OLX Indonesia dominates the market. Some players such as Mobil123 & Carmudi also cater to dealers along with individual sellers and buyers.

Indonesia Used Car Market Future Outlook & Projections

The used car industry is expected to recover from the Covid-19 pandemic and witness growth by 2025. The increasing demand from tier-2 cities for personal mobility is expected to drive the growth of the industry. The growing traction towards online platforms is expected to compel dealerships to expand their presence online. Online platforms are expected to leverage the latest technologies such as artificial intelligence & virtual reality to enhance the user browsing experience.

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 Segmentation (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