Taiwan Used Vehicle Market is driven by Increasing Presence of Online Platforms coupled with rising number of inspection checks performed by Multi-Brand and Captive Dealers before selling a used vehicle: Ken Research

“Introduction of government policies (Scrappage Programme) coupled with shift in customer preference towards Captive Dealers for purchasing used vehicles have driven the Taiwan Used Vehicle Market”.

The report titledTaiwan Used Vehicle Market Outlook to 2025 – By Type (Sedans, SUV’s, Hatchbacks, MPVs, LCVs and Others), By Vehicle Age, By Cities, By Organized and Unorganized, By Brand (Toyota, Mitsubishi, Honda, Nissan, Mercedes Benz, Mazda and Others), By Distance Driven and By Price Rangeby Ken Research suggested that the Taiwan Used Vehicle Market has been increasing due to surge in average disposable income per capita coupled with faster car replacement rate and introduction of government policies to offer subsidy on purchase of new vehicles. The market is expected to register a positive CAGR of 4.8% in terms of sales volume during the forecast period 2018-2025.

Government’s Scrappage Program: Taiwanese Government has initiated a scrappage programme in the year 2016 to promote the sale of new cars by providing subsidy of NTD 50,000 on purchase of new car and discarding/exporting vehicles older than 6 years has given rise to the sales volume of used cars in Taiwan. The scrappage program has been quite successful, as it has led to around 30% of new vehicle purchases in the year 2016, which shows it was an effective strategy. The sale of new vehicles in the country has positively impacted the used vehicle market in Taiwan as it has led to faster replacement period of a vehicle.

Faster Replacement Age of Vehicles: The average replacement rate of used vehicle in Taiwan is growing over the years from 3.5 years in 2013 to 3.4 years in 2018, largely due to the high resale value a seller gets on replacing a vehicle between 2-4 years of vehicle age. The dealership outlets keep replacing the cars with the fast moving models so as to ensure higher margins on the sale of such cars. The value of a new car depreciates 20% in the first year followed by a depreciation of 5% each year henceforth.

Taiwan Used Car Industry

Strong Presence of Online Platform and Emergence of Captive Dealers: Strong reach of online platforms and the facility to provide inspection check and certificate of original cars by captive dealers has instill a sense of security in the mind of consumers and  has largely helped organized dealers to gain traction in the market.  Moreover, additional services provided by online platforms and captive dealers includes financial consultation and transfer of registration certificate on buying a used car has lessen the burden of consumers and has positively impacted the used vehicle market in the country.

Key Segments Covered:-

By Distribution Channel

Organized Players

Unorganized Players

By Organized Players

Multi-Brand Dealers

Captive Dealers

Auction Dealers

By Type of Vehicle

Sedans

SUV’s

Hatchbacks

MPVs

LCV’s

Others

By Vehicle Age

0-2 Years

2-4 Years

4-6 Years

More than 6 Years

By Cities

Taichung City

New Taipei City

Taoyuan City

Koahsiung City

Taipei

Tainan

Hsinchu

Others

By Price

Less Than NTD 150,000

NTD 150,000- NTD 250,000

NTD 250,000- NTD 550,000

NTD 550,000- NTD 750,000

More Than NTD 750,000

By Distance Driven

Less than 5,000 kms

5,000- 20,000 kms

20,000-50,000 kms

50,000- 80,000 kms

80,000- 120,000 kms

Above 120,000 kms

By Brand

Toyota (Lexus)

Mitsubishi

Honda

Nissan

Mercedes Benz

Mazda

Others

Key Target Audience:-

OEM’S Companies

Multi Brand Dealers

Captive Dealers

Venture Capitalist Firms

Government/ Regulatory Authorities

Online Auto-Classifieds

Time Period Captured in the Report:-

Historical Period: 2013-2018

Forecast Period: 2019F-2025F

Companies Covered:-

Major Online Players in Taiwan

8891.com

All Best Choice

Major Captive Dealers

Lexus Toyota

Jaguar Approved

Mitsubishi MPO

Ford Assured

Audi Approved Plus

Das Welt Auto

Land Rover

Porsche Approved

Multi-Brand Dealers

SUM

SAVE

Hot Car

Car OK

For more information, refer to below link:-

Taiwan Used Vehicle Market

Related Reports:-

Indonesia Used Car Market Outlook to 2023 – Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales

China Used Vehicle Market Outlook to 2022 – by Type of Vehicle (Sedans, SUVs, Micro Vans, MPVs, Trucks, Buses, Cross Type Vehicles, Trailers, Motor Cycles and Low Speed Trucks), by Vehicle Age, by Distribution Channels, by Region, by Price of Vehicle

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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