The market is poised to grow at a CAGR of over 8% owing to the increased popularity of online players and entry of OEM certified dealers: Ken Research
- Online platforms generate over 80% of the leads by virtue of access to a large inventory base and easier user interface that gives user a number of choices to choose from.
The online used car market has been emerging with the rise in the popularity of e-commerce platforms in the country. The growth of online advertising, which has fuelled the rise of online classified platforms such as Mudah.my, Motor Trader, Carlist.my, WeMotor and others have revolutionized the way in which pre-owned vehicles have been sold in the country. With the growth in the number of vehicles sold online, these players not only witnessed a sharp growth in marketplace revenue but also from other sources including advertisements, subscriptions and other value-added services. These transaction marketplace platforms are expected to demonstrate a 25-30% CAGR till 2026 on account of growth in the online segment due to rapid internet penetration and increase in transaction volume due to preference of owning personal vehicles, mainly due to Covid-19.
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- “C2B in demand:” Malaysia C2B Used Car Market showcased a CAGR of over 7% during the period 2016-2021 and currently stands at MYR 18 Bn.
Malaysia C2B used car market size was valued at MYR 18.2 Bn in 2021; recording a 7.9% CAGR in between 2016 and 2021 on the basis of GMV. The market is expected to witness a CAGR of 6.8% during the period 2016-2021. One of the main reasons behind the high preference of this channel being the swiftness & convenience that the buyer experiences while making a purchase through C2B platforms.
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- The industry is expected to grow at 8% over the next 5 years because of increasing preference towards personal owned vehicles and growth of online platforms.
The used car sales surged in 2021 from 2020 by ~50% because of the sudden surge in demand due to Covid 19; however, with full vaccination happening and Malaysia adopting itself to the new normal, the sales plunged a bit in 2022 but are expected to stabilize further.
Use of advanced technologies such as AI to valuate car online by looking at the pictures only, 360-degree view of the interiors of the car, etc. to enhance digital experience of consumers are some of the features that are expected to become popular during the forecasted period. Companies like FMCCAM are planning to introduce new online marketplace and look for used car financiers from Japan, China and Taiwan so as to increase used car sales. Moreover, larger number of independent and multi-brand dealers are expected to shift towards online platforms and increase their digital presence.