Future Outlook of Malaysia Used Car Market and Growth Rate: Ken Research

How Is the Malaysia Used Car Market Positioned?

Overview: The Used car market in Malaysia is quite fragmented amongst the unorganized players in the industry. The used to new car ratio has been increasing over time and is currently at 1.38:1.  Increasing demand for private vehicles, increasing purchasing power, easy availability of finance, increased govt. incentives to ensure sale of new cars are the main reasons behind positive growth in used car revenue. Other major drivers include increased internet and smartphone penetration and emergence of online players which have made the overall process of selling and buying used cars smooth, thus boosting sales.

The buying decision of the customers is influenced by key parameters such as Price, Model and Brand value. Home grown brands Proton & Perodua account for majority of the market share.

Market: Market for used car in Malaysia has enhanced by a CAGR of ~% over the period 2015-2021 on the basis of revenue. Sales for used cars were recorded at ~ units in Malaysia during 2021.

Increasing demand for quality cars, warranty packages, post-sale services, easy financing are the main reasons behind positive growth in the sales of OEMs dealerships. However, independent dealers dominate the market as they offer cheaper price as compared to OEMs and Multi-brand Showrooms.

The demand for used cars decreased during the peak of pandemic on account of MCO restrictions. This was due to low supply and closure of OEM dealerships and Local Tents during lockdown. However, as the country witnessed easing of lockdown restrictions, there was a significant traction in used car sales fueled by changing consumer preferences. Going forward, the manufacturers are expected to shift focus towards digital medium in order to drive sales and increase customer footfall.

malaysia-used-car-market

Malaysia Used Car Market Segmentation

By Sales channel: B2C/OEM dominates the market both in terms of both volume and value due to the provision of value-added services and after sales services. C2C transactions occurring between friends and family are comparatively very less.

By Source of lead generation:

In Malaysia, Online platform is the most preferred method for lead generation for organized players as it eliminates middlemen and the commission margin associated with them. It also offers a display of large variety of used vehicles on a single click and allows person to compare different vehicles at the same time.

By Type of Car: Sedans are the most popular car types in Malaysia. This is majorly due to the fact that they have both commercial and personal utility, mostly finding applications by young professionals, store/business heads, on- demand services like taxi and rental services

By Price: The price range of MYR 30,000-50,000 accounted for highest percentage share of used cars in Malaysia in 2021.  Sedans and Hatchback are the most popular car models preferred by Malaysians, and a vast majority of them lie in this price range.

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By Brand: Perodua is the market leader in Malaysia accounting for greater than 30% of sale of used cars by volume. Cars of Perodua, Proton, Toyota, Honda, Nissan are the most preferred due to strong brand value, reliability, longer life span, and higher retention value of the used vehicles.

By Kilometers Driven: Cars with running of 80,000- 120,000 kilometers dominate the market. Vehicles used for commercial purposes such as taxis, rentals travel in excess of 40,000 kms every year.

By Ownership Period: Cars with ownership period of 5-8 years have the highest market share owing to high durability of the pickup trucks in the country. Since these vehicles have sturdy engines, the owners tend to keep them for long time and use it for business purposes

By Region: High urban population and disposable income in Kuala Lumpur & Selengor has led to generation of ~% of the used car sales over these regions. Due to geographical factors, East Malaysia has a high demand on pickup trucks. East Malaysian cities such as Sabah, Kuching have sales generated majorly by pickup trucks that provide better power and maneuverability, especially for off road commercial applications such as logging, construction, and plantation

C2b Used Car Market Size

C2B Platforms for used cars make the car selling process more convenient. Malaysia C2B used car market size was valued at MYR ~Bn in 2021; recording a contraction of ~% CAGR in between 2016 and 2021 on the basis of GMV.

The C2B Platforms enable sellers to sell used cars directly to the online players who in turn sell the inventory to the dealers either through bidding or by general sales process while charging a margin.

On a C2B Platform, the sellers can upload a quick listing of their vehicles, receive offers from interesting buyers and accept the most feasible option to sell it online. The market displays a sales volume of ~ units through C2B channel in 2021 with a CAGR of ~% during the period 2016-2021.

Key Segments Covered: –

By Market Structure

Organized

Unorganized

By Sales Channel

B2C/OEM organized

C2C

Auction

By Source of Lead generation

Online

Dealership walk-ins

By Car Segment

Sedan

Hatchback

SUV

MPV

Pickup trucks

Others (convertibles, coupe, sports vehicles, etc.)

By Price

Less than MYR 30,000

MYR 30,000-50,000

MYR 50,000-70,000

MYR 70,000-90,000

More than 90,000

By Brand

Perodua

Proton

Honda

Toyota

Nissan

Others (Mitsubishi, Mazda, Mercedes, Audi, etc)

By Region

Kuala Lumpur

Selengor

Johor

Penang

Perak

Others

By Ownership period

Less than 2 years

2-4 years

4-6 years

6-8 years

More than 8 years

By Mileage

Less than 20,000

20,000-50,000

50,000-80,000

80,000-120,000

Above 120,000

By Fuel

Petrol

Diesel

Hybrid

Electric

Companies Covered

OEM Dealerships

Perodua Pre-owned

Proton Certified Pre-owned

Toyota Topmark

Mazda Certified Pre-owned

BMW Premium Selection

Mercedes Benz Certified Pre-owned

Online Portals – C2B platforms

Carsome

MyTukar

MyMotor

Online Portals – Online Auto Classified Platforms

Mudah.my

Motor Trader

Carlist.my

WeMotor

Motor Trader

Autocari

Oto.my

B2B Auction players

G-Mart

MUV

NG Chan Mau & Company

Pickles Auction

Key Target Audience

Used Car Companies

OEMs

Online Used Car Portals

Auction players

Used Car Financing Companies

Government Bodies

Investors & Venture Capital Firms

Used Car Dealerships

Used Car Distributors Auction Houses

Used Car Associations

Time Period Captured in the Report: –

Historical Period – 2015-2021

Forecast Period – 2021-2026F

Key Topics Covered in the Report: –

Executive Summary

Research Methodology

Malaysia Used Car Market Overview

Malaysia Used Car Market Size, 2015-2020

Malaysia Used Car Market Segmentation, 2020

Growth Drivers in Malaysia Used Car Market

Issues and Challenges in Malaysia Used Car Market

Regulatory Framework

Ecosystem and Value Chain of Used Car Industry in Malaysia

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

Snapshot on C2B and online classified market

Snapshot on Auction Market

Future Market Size and Segmentations, 2021-2025F

Covid-19 Impact on the Industry & the way forward

Analysts’ Recommendations

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

Malaysia Used Car Market Growth Rate

Related Reports by Ken Research: –

Indonesia Used Car Market Outlook to 2025

Saudi Arabia Used Car Market Outlook to 2025

Contact Us: –

Ken Research

Ankur Gupta, Head Marketing & Communications

Support@kenresearch.com

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