Malaysia Used Vehicle Market Outlook to 2025

Malaysia Used Vehicle Overview and Size

Malaysia Used Vehicle market in terms of sales volume has increased at a single digit CAGR over the reviewperiod 2013-2018. The market is gradually surging with high car ownership ratio, growing urban population,increasing average ticket size, faster vehicle replacement rate and increasing support of Malaysiangovernment in terms of policy formulation and regulations. The market was observed to be at the late growthstage.

The buyers in Malaysia are highly price sensitive with depreciating currency over the years. Governmentnorms with respect to EEV’s and ElV policy will positively impact Used Vehicle Market in Malaysia. Malaysiansorefer to buy a used motor vehicle as new ones are very expensive, For middle or lower income aroup peopleused cars have become more popular choices. Malaysia Used to New vehicle ratio has been increasing overthe years leading to growth in sales volume of used cars in Malaysia.0

Malaysia Used Vehicle Market Segmentation

By Distribution Channel: in Malaysia, the used vehicle market is highly fragmented with close 5000 usedvehicle dealers operating in the market in the year 2018. The Organized players are very less, whereasunorganized dealers in Malaysia are very large in number present in different locations in Malaysia. MalaysiaUsed Vehicle Market in terms sales volume was largely dominated by Unorganized Dealers. On the otherhand, organized dealer’s sales accounted the reaming share in 2018.

By Organized Dealers: Multi Brand Dealership outlets are dominating in Malaysia Used Vehicle Market due tothe large portfolio of vehicles provided with a huge space for negotiation on purchase.

By Mode of Selling: In Malaysia, selling and buying a used vehicle via online platform is the most convenientmethod for customers and dealers as sale of used vehicles via online platforms eliminates middlemen and itscommission margin. Lower commission charged attracts major population to purchase through onlineplatform.

By Type of Vehicle: Sedans and SUVs are the dominating segments in body type of used vehicle. Sedans havehigh average car life and lies within the budget of Malaysians. Preference to buy new MPV and LCVs was thekey factor for low demand in the used vehicle segment.

By Vehicle Age: 5-8 years of vehicle age accounted for highest market share due to the average replacementrate of 6 years in Malaysia. The market share is followed by 3-5 vears of vehicle age as selling of vehicle durinothis period generates a high resale walue.

By City: Kuala Lumpur and Selengor are dominating the used vehicle market in terms of sales volume largelydue to the higher percentage of people that solely depends on the passenger cars and growing workingpopulation observed in Selengor during last five years.

By Price Ranae: The average ticket size of Malaysia used vehicle market is arowing over the years. The pricerange of MYR 30,000 – MYR 50,000 accounted for highest percentage share due the replacement rate alongwith the depreciation charged over the years on new vehicles.

By Brand: Perodua dominated the sales volume of used vehicle in Malaysia. Domestically manufacturedvehicle brand include Perodua and Proton and Japanese brands that include Toyota, Honda and Nissan arethe most preferred brands in the used-vehicle market due to strong brand preference, reliability, longer lifespan, and higher retention value of the used vehicle.

Competitive Landscape

Used Vehicle Market in Malaysia is highly fragmented with presence of around 5,000 dealers across all thecities in Malavsia. Used car dealers in Malavsia compete on the basis of number of dealership outlets: valueadded services, quality checks performed, insurance and finances and portfolio of used cars at theirdealership store.There are numerous players that are operating in Malaysia Used Vehicle Market. Organizeddealers include Direct Dealership Sales Agents (Toyota TopMark, Perodua Pre-0wned and Mercedes BenzPremium Selection) and Multi Brand Dealership Outlets (Deluxe Car Trader, Yap’s Auto Car City, Public AutoWorld, Keong Heng and others). Major online players for used vehicle market in Malaysia are Mudah.my,Carlist.my, Motor Trader, We Motor, My Motor, Autocari and others.

Malaysia Used Vehicle Market Future Outlook

The Malaysia Used Vehicle market in terms of sales volume is expected to grow in the future at a single digitCAGR over the forecast period (2018-2025E). in future, it is anticipated that used car sales volume will befuelled by increasing government policies related to used cars such as EEV and Elv, growing urbanpopulation, increasing car replacement rate, increasing inspection checks and growing customer confidenceGross Transaction Volume will significantly increase at a positive CAGR during the period 2018-2025E due tothe increasina average ticket size of a used vehicle over the years.