# Malaysia Used Car Market (2022-2027) --- ## Report Summary The Malaysia Used Car Market report covers market size, share, growth, trends, outlook, companies and forecast insights across 2020-2031. --- ## Malaysia Used Car Market Table of Contents Table of Contents - 1. Market Overview - 1.1. Market Highlights - 1.2. Market Definition - 1.3. Taxonomy - 2. Malaysia Used Car Market Ecosystem - 3. Market Size of Malaysia Used Car Market - 4. Malaysia Used Car Market Segmentation - 4.1. Segmentation by Distribution Channel on the basis of Units sold in % (2022) Th Units, 2022 - 4.2. Segmentation by Type of Vehicle on the basis of Units sold Th Units, 2022 - 4.3. Segmentation by Brands on the basis of Units sold Th Units, 2022 - 4.4. Segmentation by Vehicle Age on the basis of Units sold Th Units, 2022 - 4.5. Segmentation by City on the Basis of Units Sold Th Units in %, 2022 - 4.6. Segmentation by Price on the basis of Units sold Th Units in %, 2022 - 4.7. Segmentation by Mileage ((In Km Run) on the basis of Units sold Th Units in %, 2022 - 5. Competitive Analysis of Malaysia used car market - 5.1. Competitive Analysis of C2B and Online Classifieds: Number of Listings and Business Models - 5.2. Competitive Analysis of C2B and Online Classifieds: Daily page views, website global and country rank - 5.3. Timeline of Multi brand dealers in Malaysia Used Car Market - 5.4. Cross comparison of Multi brand dealers in Malaysia Used Car Market: Number of Listings and Major Brands - 5.5. Services Provided by Multi brand dealers in Malaysia: Services - 6. SWOT Analysis - 7. Trends and Developments in the Malaysia Used Car Market - 8. Regulatory Organizations in Malaysia Used Car Market - 9. GST Margin Scheme for Secondhand Car Dealer in Malaysia - 10. Growth Drivers of Malaysia Used Market - 11. Challenges in Malaysia Used Market - 12. Malaysia Used Car Market Cash Flow Analysis - 13. Future Outlook of Malaysia Used Car Market - 13.1. Malaysia Used Car Market Size by Volume in Th Units, 2022–27F - 13.2. Malaysia Used Car Market Size by Revenue in MYR Bn, 2022–2027 - 14. Macroeconomic Indicators - 14.1. Malaysia Nominal GDP - 14.2. Malaysia Population - 14.3. New Vehicles Registrations in Malaysia, 2017–2027 in Th Units - 14.4. Motor vehicle sales in Malaysia - 15. Table of Contents - 16. Frequently Asked Questions --- ## Malaysia Used Car Market Overview Malaysia Used Car Market Highlights The revenue of the Malaysia Used Car Market amounted to MYR 17.5 Bn in 2022, recording an annual growth rate of 18.8%. The market is projected to reach MYR 26.2 Bn by 2027, expanding at a CAGR of 8.5% during the forecast period of 2022–2027. The growth of the Malaysia used car market is primarily driven by expanding vehicle ownership, availability of financing options, sales tax exemptions, and long waiting periods for new cars, which encourage consumers to opt for used vehicles. *The revenue of Malaysia Used Car market amounts to MYR 17.5 Bn in 2022, with an annual growth rate of 18.8 %.* --- ## Malaysia Used Car Market Definition ### Market Definition **Definition of Malaysia Used Car** Malaysia used car market has been defined as the domestic sale of all types of used passenger cars (Multi-Purpose Vehicles, Hatchbacks/Economy Cars, SUVs and other cars including Sedans, Luxury cars and more) through both online channels as well as offline (Organized Dealers/Unorganized Dealers) channels. The sale of heavy commercial vehicles such as buses and trucks is excluded from the market. It includes the total Gross Transaction Value (GTV) generated from the sale of used passenger cars across Malaysia in a year from both organized and unorganized segments. It includes the dealership margin but excludes revenue generated from warranty, insurance or financial services. **Organized Sector** An organized dealer is defined as an OEM Certified/Authorized or a Multi Brand Dealership with more than 50 used cars in stock or that has more than one branch in Malaysia. Used car sales through auction houses & sales of repossessed cars by Banks & NBFCs have also been considered a part of the organized sector. **Passenger Vehicle** Passenger car includes vehicles having four wheels intended for the carriage of passengers and designed to seat no more than nine persons inclusive of the driver. **Multi-brand showrooms** It include standalone/clustered dealerships or showrooms that sell used cars of various brands through a physical store, having more than 50 units of used cars in stock or more than one outlet/branch across the country. **Standalone/clustered dealerships** These include those that have 1-50 units of used cars in stock on average or have only 1 branch across the country **OEM certified/ Authorized dealerships** It includes dealerships/showrooms authorized by OEMs/Brands to sell certified (under the certified pre-owned program) as well as non-certified pre-owned cars of the specific brand throughout the country. --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | Malaysia Used Car Market | | 2 | 1 | Distribution Channel | | 3 | 2 | Organized | | 4 | 2 | Unorganized | | 5 | 1 | Type of Vehicle | | 6 | 5 | Sedans | | 7 | 5 | Hatchbacks | | 8 | 5 | SUVs | | 9 | 5 | MPVs | | 10 | 5 | Others | | 11 | 1 | Type of Brand | | 12 | 11 | Perodua | | 13 | 11 | Proton | | 14 | 11 | Toyota | | 15 | 11 | Honda | | 16 | 11 | Nissan | | 17 | 11 | Others | | 18 | 1 | Age of Vehicle | | 19 | 18 | 0–2 Years | | 20 | 18 | 2–4 Years | | 21 | 18 | 4–6 Years | | 22 | 18 | 6–8 Years | | 23 | 18 | 8+ Years | | 24 | 1 | City | | 25 | 24 | Kuala | | 26 | 24 | Selangor | | 27 | 24 | Johor | | 28 | 24 | Perak | | 29 | 24 | Others | | 30 | 1 | Price | | 31 | 30 | MYR 30,000 - MYR 50,000 | | 32 | 30 | MYR 50,000 - MYR 70,000 | | 33 | 30 | MYR 70,000 - MYR 90,000 | | 34 | 30 | < MYR 30,000 | | 35 | 30 | > MYR 90,000 | --- ## Malaysia Used Car Market Ecosystem ### Market Ecosystem **Ecosystem of Malaysia Used Car Market** The Malaysia used car market is highly fragmented as the market has a presence of 5000 dealers across the country. However, the market is dominated by online players owing to their competitive price offerings. OEM-certified dealers have also steadily started penetrating the market. --- ## Market Size of Malaysia Used Car Market The Malaysia used car market witnessed notable expansion over the historical period, growing from MYR 10.6 Bn in 2017 to MYR 17.5 Bn in 2022, registering a CAGR of 10.3% between 2017 and 2022. The market demonstrated steady year-on-year growth, reaching MYR 11.5 Bn in 2018, MYR 12.7 Bn in 2019, MYR 14.1 Bn in 2020, and MYR 14.7 Bn in 2021. Among these years, the highest annual growth was recorded in 2022 at 18.8%, followed by 10.9% in 2020, 10.6% in 2019, 7.9% in 2018, and 4.0% in 2021, reflecting strong demand recovery and increasing consumer preference for used vehicles. --- ## Malaysia Used Car Market Segmentation ### Segmentation by Distribution Channel on the basis of Units sold in % (2022) Th Units, 2022 Organized sector is dominating the distribution channels of the market as some unorganized used car dealers’ charges hidden fees such as tax and processing fees of MYR 4,000 - 5,000 on top of the car’s listed price. ### Segmentation by Type of Vehicle on the basis of Units sold Th Units, 2022 Sedans and Hatchbacks are ruling the market as young professionals, businesses and on-demand services largely uses Sedans and Hatchbacks. Higher demand for sedans in Malaysia is due to their affordability and higher resale value. In 2022, more than 70% of CARSOME’s total delivery consists of hatchbacks and sedans. SUVs captures over 21% of the Malaysia used car market followed by MPVs that rules over 12% of the market. Rest of the 6% market is highly fragmented and is divided among different vehicle types. ### Segmentation by Vehicle Age on the basis of Units sold Th Units, 2022 Out of all the categories, 4-6 years old vehicles record the highest number of Th units sold (140.9) which captures 33.6% market, followed by 6-8 years old car (101.9) and 8+ years old cars with a market share of 24.3% and 20.2% respectively. Insurance premiums for 4-6-year-old vehicles are typically lower compared to brand-new vehicles. Higher financing options and availability of service and parts increases their preference in the market. ### Segmentation by City on the Basis of Units Sold Th Units in %, 2022 The Klang Valley comprising Kuala Lumpur and Selangor accounts for the highest used car sales in the country (45.4%) due to the high urban population & disposable income in the region and the presence of the large number of dealerships & used car exchanges. Kuala Lumpur, Selangor, Melaka and Johor are the major commercial hubs in Malaysia and Kaula Lumpur, Penang, Sarawak are major tourism hubs which increases the road traffic. ### Segmentation by Price on the basis of Units sold Th Units in %, 2022 Used car vehicles ranging between MYR 30,000-50,000 generate the highest sales owing to their larger preference by the middle-class population in Malaysia. Some of the factors affecting the demand for used cars within a range of MYR 30,000-50,000 are better condition, enhanced resale value and better fuel efficiency and preference by the middle class. Used cars ranging lower than 30,000 are the second most sold in Malaysia used car market. Cars below MYR 30,000 have a higher rebound in recovery from the dip due to the MCO in Malaysia. Cars ranging from MYR 50,000-70,000 captures around 20.4% of the market followed by cars ranging from MYR 70,000-90,000 and more than 90,000 with a market size of 10.0% and 2.8% respectively. ### Segmentation by Mileage ((In Km Run) on the basis of Units sold Th Units in %, 2022 Moderate mileage vehicles are dominating as it is often more affordable and help Malaysians save money on their transportation costs. Preference for 80,000-120,000 km mileage is driven by the warranty services. Warranty is usually valid for 5 years or until it typically covers 120,000 km. Lower mileage vehicles are typically driven within the city, hence, even if they don’t travel far, they are still subjected to stop-go traffic and typical Malaysian heat. In stop-and-go traffic, the transmission is required to change gears more frequently as the car speeds up and slows down, putting additional strain on the car's drivetrain. --- ## Malaysia Used Car Market Industry Analysis ### Trends and Developments in the Malaysia Used Car Market Extended warranty programs, OEM certified car labs, fund raising options and rise of used EVs are few trends and developments in the market that are influencing the used car industry in the Malaysia. In 2022, FMCCAM has tied up with eAutoGen Capital to launch AutoGen Plus, an extended warranty programme for up to 10 years. Another after sales warranty program is ’s Mudah Vehicle Inspection & Protection (mVIP) program in collaboration with MUV. Carsome has introduced Carsome Certified Lab where all cars go through a 175-point inspection process. In Carsome PJ Automall, customers can view, test drive a car, and explore financing options and car aesthetics services in one location for total convenience. Carsome has begun considering a U.S. initial public offering (IPO). With the IPO, it could seek ~USD 2 Bn in valuation. The listing might also be a merger with a special purpose acquisition company (SPAC) or a conventional IPO. There are more than 10,000 EVs currently registered in Malaysia and the number is expected to increase with the arrival of BYD and Ora. Government is promoting EVs under MYR 100,000 in Malaysia. As more people continue to adopt EVs, there will be an increase in the number of used EVs in the market. ### Growth Drivers of Malaysia Used Car Market Increasing vehicle ownership among the middle class, availability of financing options, Sales Tax Exemptions and rising trade-in culture are some of the prominent growth drivers in the Malaysia Used Car market influencing the growth of the industry. With the expansion of the middle class and growing economy, more Malaysians can afford to acquire an automobile. In Malaysia, the middle-class monthly income ranges from MYR 4,851 and MYR 10,970. Financing alternatives for secondhand cars have become more readily available in the last several years. To make used automobiles more accessible to customers, banks and financial institutions in Malaysia provide loans and flexible financing programs designed specifically for them. In June 2020, the Penjana, or short-term economic recovery plan, announced the exemption from automobile sales tax. This benefit was later extended until June 2022. Under the exemption, the sales tax on automobiles built locally is totally waived, while the sales tax on cars imported from outside is lowered from 10% to 5%, which lead to a significant growth in the market. ### Challenges in Malaysia Used Car Market Financial hindrance, involvement of middlemen and domination of unorganized players are the major challenges in the Malaysia Used Car market. These challenges have impacted the growth of the market to a certain point. The financial accessibility for obtaining vehicle loans is further restricted by a cap on the number of loans that an individual can take out due to Bank Negara Malaysia's (BNM) tightening financing guidelines. It is difficult for an non-Malaysians to take advantage of financing possibilities because the majority of Malaysian banks only finance about 70% of the total cost of used automobile purchases made by foreigners in the nation. The price of used cars is almost equivalent to that of new cars due to the domination of the industry by "middlemen." It is challenging for dealers to acquire stocks directly from automobile owners. The price of some well-known brands has nearly matched the cost of a new automobile due to a MYR 3,000 increase in the price collected from middlemen. For example, a brand-new 2020 Toyota Vios (J Spec) is available at the price of MYR 78,000, whereas a pre-owned 2020 model is currently listed for MYR 67,000. Unorganized and traditional dealers continue to dominate the industry. Price conscious & lower income customers prefer informal channels including local dealers, friends/relatives, roadside mechanics etc offering limited choices & deals, which is a major constraint for the growth in the market. --- ## Future Outlook of Malaysia Used Car Market ### Malaysia Used Car Market Size by Volume in Th Units, 2022-27 The Malaysia used car market is projected to reach a market size of 586.5 Th units by 2027, compared to 419.3 Th units in 2022, reflecting strong expansion during the forecast period of 2022–2027. In 2023, the market is expected to record its highest annual growth rate of 9.7%, supported by several government regulations and the price-sensitive attitude of the population, which continues to favor used vehicle purchases over new cars. The market is estimated to reach 459.9 Th units in 2023, followed by 499.2 Th units in 2024, 523.8 Th units in 2025, and 554.5 Th units in 2026, with corresponding growth rates of 9.7%, 8.5%, 4.9%, and 5.9%, respectively. ### Malaysia Used Car Market Size by Revenue in MYR Bn, 2022-2027 The Malaysia used car market is anticipated to reach a market size of MYR 26.2 Bn by 2027, compared to MYR 17.5 Bn in 2022, growing at a CAGR of 8.5% during the forecast period of 2022–2027. The market is projected to reach MYR 21.4 Bn in 2024, followed by MYR 22.7 Bn in 2025 and MYR 24.5 Bn in 2026, with corresponding growth rates of 11.0%, 10.4%, 6.3%, and 7.5%, respectively. The growth of the Malaysia used car market is being driven by factors such as increasing vehicle ownership among the middle class, availability of financing options, sales tax exemptions, and a rising trade-in culture. --- ## Malaysia Used Car Market Macroeconomic Indicators ### Malaysia Nominal GDP In 2022, Malaysia's GDP was valued at USD 406.31 Bn compared to USD 320.2 Bn in 2017. The country witnessed negative growth in 2020 due to global pandemic COVID-19, Malaysia’s GDP was estimated at USD 337.4 Bn compared to USD 356.18 Bn. ### Malaysia Population In 2022, the total population of Malaysia was recorded at 32.7 million out of which 17 Mn were male and 15.7 were female. The sex ratio in Malaysia is 111 females per 100 males. ### New Vehicles Registrations in Malaysia, 2017-2027 in Th Units In the historical period of 2017 and 2022, Malaysia's market for passenger cars expanded at a compound annual growth rate (CAGR) of 4.5%, On the contrary, the commercial vehicles market grew at a CAGR of 4.9%. --- ## Frequently Asked Questions Find quick answers to common questions about the Malaysia Used Car Market **Q: How big is the Malaysia Used Car Market?** A: The Malaysia Used Car market was valued at MYR 19.4 million in 2023. **Q: What is the future market size of the Malaysia Used Car Market?** A: The future market size of the Malaysia Used Car Market is expected to reach MYR 26.2 million in the forecasted period of 2023-2027 growing at a CAGR of 8.5%. **Q: Who are the key players in the Malaysia Used Car market?** A: Mudah, mymotor, CARSOME, my Tukar, and WapCarsome are some of the prominent companies operating in the Malaysia Used Car market. **Q: What are the growth drivers of the Malaysia Used Car market?** A: Increasing vehicle ownership among the middle class, availability of financing options, Sales Tax Exemptions and rising trade-in culture are the major growth drivers of the Malaysia Used Car market. **Q: Which segment is dominating the Malaysia Used Car market in product type?** A: The Sedans car type is dominating the Malaysia Used Car market in the product type followed by Hatchbacks and others.