Q1. What is the average price of used cars sold in Malaysia? How will this change in next 5 years?
It is about 50,000 MYR. The prices of new cars are increasing and when these new cars will come in used car market, the prices of used cars would also increase. Also, consider the inflation.
Q2. What is the average milage of used car sold? Will this change in the future?
The minimum would be around 80,000. People generally don’t really sell their cars pre 80,000 milage unless they don’t drive frequently and they touched only 50-60 thousand milage in say, 6-8 years. Unless this is the case, people do drive somewhere between 80,000 to 120,000 kilometers before they decide to sell.
Q3. Which car type is most sold in the used car segment, among SUV, Sedans, Hatchbacks etc.? And which would be the most sold in the future?
Mostly sedans are sold as of today but, Malaysians are going towards SUVs. Not only in Malaysia but the Asian markets in general is going towards SUVs. All car brands like honda, proton, volvo are focusing on SUVs. The population is tall now and taller people are more comfortable in driving SUVs compared to Sedans and that’s also the reason why market is going towards SUVs.
Q4. Which is the most sold car brand in used car segment?
Most people can only afford Perodua and Proton in Malaysia. Hence these are the most selling brands. Perodua is number one in terms of volume. Proton and Perodua together make up about 50% of the used cars sold.
Q5. What is the average age of car that is being sold in the used car market? Will this change in the future?
The average age is about 4 to 6 years. In future the EV will enter the used cars space, so not really sure.
Q6. Do people prefer buying from OEMs? If no, what is the reason that OEMs are failing in the used car segment in Malaysia?
People don’t really buy used cars from the OEMs. Toyota TopMark did try selling used cars but, were not really successful in that. Most of the OEM’s main focus is selling new cars. They are primarily the manufacturers, if they would not sell new cars, why are they even manufacturing. Selling the used cars help them to them convert a customer to buy a new car. High price is also a reason that is creating a hindrance in their growth in the used car space. Since, they use parts manufactured by them during refurbishment, the prices go up. OEMs face high price competition from the unorganized sector.
Q7. How will be the future of used car market in Malaysia? How will the market grow in next 5 years?
It has good potential. There still a segment of people in Malaysia who cannot buy a new car. Also, some people do buy a used car as their second vehicle. It is possible that the market will grow between 5-10% year on year.
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Ankur Gupta, Head Marketing & Communications