The Used Vehicles Market in the terms of sales volume has augmented at a single digit CAGR over the forecast duration. The market is progressively developing with the high car ownership ration, effective augment in the number of urban population, growing average ticket size, robust vehicle substitution rate and the increasing sustenance of the Malaysian government in the terms of policy formulation and the regulations. The market was positively monitored to be at the late growth stage. The purchaser in the respective region are decidedly price sensitive with declining currency over the years. The Government norms with respect to EEVs and ELV policy will completely impact Used Vehicle Market.
Whereas, the Malaysians prefer to purchase a used motor vehicle as new ones are very luxurious. For the middle or lower income group people, used cars have converted more standard choices. Malaysia Used to New vehicle ration has been growing over the years, primary to growth in sales volume of the used cars in Malaysia.
Based on the distribution channel, the Used Vehicle Market in Malaysia is broadly fragmented with the close 5000 used vehicle dealers functioning in the market in the recent past years. By the mode of selling, in the developed regions, selling and buying a Used Vehicle via online platform is the most convenient manner for the consumers and dealers as the sale of used vehicles through the online platforms abolishes the middlemen and its commission sideline. Lesser commission charged attracts foremost populace to buy used vehicle via online platform. However, on the basis of vehicle age, 5-8 years of the vehicle age registered for the uppermost market share owing to the average substitution rate for 6 years in the respective region across the globe.
Nonetheless, Used Vehicle Industry across the Malaysia is extremely scrappy with the existence of approximately 5,000 dealers across all the regions in Malaysia. The Used car dealers in the Malaysia compete based on the quantity of dealership outlets; quality checks functioned, value added services, insurance and finances and collection of the used cards at their authorization store.
In addition, in India the advanced marketing initiatives such as augmented existence and regular surveys to gauge consumer discernment to plan their strategies have completely obstructed the market. These are accomplished by the organizing events inviting present and forthcoming clients and assembling their feedback over the passage of activities and engagements. As the luxury car market gets more worthwhile, other foreign players are predictable to welcome the market. Prevailing companies demand to function on continuing its reach so that the impact of market entry by other foremost known brands such as Mustang, Tesla, MG Hector, and Acura may not impression its market.
Future for premium used car across the nation looks captivating and reproducing of client preference from the western economies is projected. Leasing of cars and lower ownership period are projected to have constructive impact on requirement as the quality products will be obtainable at reasonable value. However, in India, Audi’s market share has deteriorated considerably is predictable to gain some market. New entrants in the electric car sectors and enactment of Bharat-VI norms may reason many prevailing car owner to sell their cars causing weakening in the average ticket size. It is anticipated that in the near years the market of used cars sales volume will be fostered by growing government policies related to used cars namely EEV and ELV, increasing urban population, growing car replacement rate, augmenting inspection checks and intensifying customer confidence over the coming decades.
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Ankur Gupta, Head Marketing & Communications