How The Indonesia Used Car Market Positioned?
Indonesia is one of the largest automotive and used car markets in Southeast Asia. It is home to many OEMs having production and assembling plants in the country. The number of vehicles domestically manufactured reached ~ million units whereas the number of locally produced passenger cars reached ~ units. The passenger car ownership ratio in the country is however relatively less at ~ cars per 1,000 individuals as compared to its neighboring countries Malaysia and Thailand with ~ and ~ per 1,000 individuals respectively in 2019. The used car sales in the country have also been inclining over the period 2014-2019. The growing urban population and disposable income among the working population is contributing to the growth of the used car industry.
The used to new car ratio in the country has improved from ~ in 2014 to ~ in 2020. The used car sales basis volume in units witnessed a CAGR of ~% over the period 2014-2019, crossing ~ million units in 2019. On the basis of gross transaction value, the industry grew from USD ~ billion in 2014 to USD ~ billion in 2019. The industry declined during 2016-2017 owing to the economic and automotive industry slowdown during the period. After recovery in 2018-2019, the industry was again hit a roadblock in 2020 amidst the Covid-19 pandemic, which significantly impacted the used car sales, prices and inventory with the dealers. The easy availability of financing options on the other hand, has aided the industry’s growth.
Indonesia Used Car Market Segmentation
By Market Structure: The used car industry in Indonesia was identified to be largely unorganized due to the preference towards local, independent dealers. Multi-brand & OEM-certified dealerships contributed the sales volume in the organized market.
Organized Market Segmentation
By Sales Channel: Multi-brand dealers accounted for maximum used car sales in the country. OEM-certified dealerships have relatively less traction in the industry.
Unorganized Market Segmentation
By Sales Channel: Used Car sales through independent dealerships were analyzed to dominate the market as they are spread all across the country.
By Type of Car: MPVs were analyzed to account for maximum used car sales in country in 2020 and are popular among various types of consumers, particularly large-families. Toyota Innova & Avanza, Daihatsu Xenia and Honda Mobilio were observed to be the best selling models in the category. There is also growing traction towards Hatchbacks or city cars.
By Brand: There is a high demand Japanese car in Indonesia. Toyota & Honda continue to dominate the used car sales in the country due to better residual value to these brands & easy availability of spare parts. MPVs & Hatchbacks are the most popular car types sold for both of these brands. Other brands popular in the country include Daihatsu, Suzuki and Nissan among others.
Indonesia Used Market Segmentation
By Vehicle Age: A large proportion of the used cars sold in 2020 were observed to be 5-8 years old. The average car ownership period in the country is around 3-7 years due to which many cars falling in that age group are popular in the used car market.
By Mileage/Kilometers Driven: Cars with mileage between 50,000-80,000 km accounted for maximum used car sales in the country, followed by 20,000-50,000 km.
By Region: DKI Jakarta accounted for the highest used car sales in the country in 2020. The large presence of urban population in the region, including working population, & higher disposable income contributed to the high demand. East Java accounted for the second-highest used car sales volume. The region is home to large number of used car exchanges and independent & multi-brand dealerships
By Customer Profile basis Age Group: Majority of the used car buyers in the country were observed to fall under the age bracket of 30-55 years. This age group largely includes large families having multiple cars, working professionals & more. The demand from younger people in the age group 18-30 years is also increasing rapidly, particularly students and individuals in tier-1 & tier-2 cities.
Competition Scenario In Indonesia Used Car Market
The used car industry in Indonesia is highly competitive with over 8,000+ dealerships operating in the space. Both multi-brand & OEM-certified/authorized dealerships are operating in the market and each focuses on the geographical presence and value-added services offered as a key parameter to distinguish themselves. The review period also saw many online auto-classified platforms and marketplaces entering the market. These platforms focus on increasing consumer engagement, number of listings and on-boarding more dealers on their platform.
Indonesia Used Car Market Future Outlook And Projections
The used car market in Indonesia is expected to grow at a CAGR of ~% on the basis of gross transaction value and ~% on the basis of sales volume over the forecast period 2020-2025F. The market is expected to witness growth post-COVID-19 from 2021 and sales are expected to recover. Companies are expected to focus on wider distribution network including online marketplaces & e-commerce platforms and invest in research and development to compete with online platforms and boost their used car sales. The forecast period is also expected to witness growth in the demand for Hatchbacks and SUVs in the country.
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)
By Type of Car
By Vehicle Age
Less than 1 year
More than 8 years
Less than 20,000 Km
More than 120,000 Km
West & Central Java
By Age Group of Buyers
More than 50 Years
Organized Used Car Market
By Sales Channel
OEM-Certified/Authorized Dealership Outlets
Unorganized Used Car Market
By Sales Channel
Customer to Customer (C2C)
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
Key Target Audience
Car-Rental and Leasing Companies
Online Auto Classified Companies
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
For More Information on the research report, refer to below link: -
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Saudi Arabia Used Car Market Outlook to 2025- By Market Structure (Organized & Unorganized), By Type of Car (Sedans & Hatchbacks, SUVs & Crossovers, Pick-ups and Luxury), By Brand (Toyota, Hyundai, GMC & Chevrolet, Ford and Others), By Type of Sourcing, By Age of Vehicle (Less than 1 year, 1-3 years, 3-5 years & More than 5 years), By Kilometers Driven (Less than 50,000 Km, 50,000-80,000 Km, 80,000-120,000 Km & More than 120,000 Km) and By Region (Northern, Southern, Central, Eastern and Western)
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Ankur Gupta, Head Marketing & Communications