In the Asia Pacific region, the Philippines used the Vehicles Industry is one of the most auspicious markets within the Southeast Asia due to the wide volume being traded each year. There have been a number of regulatory transformation that have obstructed the market namely the present amendment on the greater tax rates for the vehicles in the dissimilar cost brackets. There are also a number of several other challenges that present for the market namely price discrepancies, shortage of standardization and several others. Whereas, the market has a lot of capacities to increase and is presently observed to be in its growth stage. However, there are a number of growth factors which has occasioned in an enlargement of the market since 2014, a listing of vehicles on online auto portals or social media pages namely Facebook, an augment in the back repossessed car market and the perception of trade-ins.
The effective growth in the average ticket size of the used car, the enormous augment in the requirement for the used cars, a surge in the online catalogue of used vehicles is some of the causes to outgrowth the growth in the ASIA PACIFIC USED VEHICLES MARKET. Therefore, in the near years, it is projected that the market of used carwill increase more effectively over the coming years.
By the type of market, in the Asia Pacific, the organized market of the Philippines used car market is small in the assessment to the unorganized market in terms of the revenue in the recent past. The organized market comprises of DDSA, banks repossessed cars and the multi-brand merchants. The unorganized market consists of the freelancers and people customers selling a very lower capacity a very low volume of vehicles in the region. The C2C/unorganized market of the Philippines in the Asia Pacific region is deducting year on years owing to the growing consciousness on the perks of purchasing a car from the organized segment. The cars with the misfortune history are very problematic to track in the unorganized market, therefore, the potential client has taking place to switch their pre-owned car buys to organized market.
Nonetheless, in the Asia Pacific region, within the organized market, the sales channel can either be a direct dealership walk-in or a lead created by the online sites for the organized players to augment their sale possibility. In the case of an online channel, the subsequent sale of the unit takes the place from a physical position only. The unorganized market players also take the effective benefit of listing their fleet on confidential portals and social media platform to augment their outreach. Although, the other channel is, straight the dealer sellout, wherein the separate seller arranges of the used car for the fair market cost to either the multi-bran d dealer or DDSA.
Nonetheless, in the Asia Pacific region, the Japanese produced used car brands were the most frequently promoted the used cars in the Philippines market. This is owing to the most of the Japanese cars brands are robust because of superiority manufacturing and are obtainable at an inexpensive price. The technology used in the Japanese cars is professed to be better than the rest of the producers. The German cars are also very prevalent among the consumers in the Philippines; however, they are comparatively sophisticated priced. Toyota Certified is the principal Direct Dealership Sales Agents (DDSA), included in marketing the maximum volume of specialized used car. This is followed by Nissan Philippines and Honda Philippines.
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Ankur Gupta, Head Marketing & Communications