South Korea Used Car Market : - While the Automotive Sectors of Most Countries Struggled to Show Resilience during the Economic Crisis Incited by Covid-19, South Korea's Used Cars Market Witnessed a Steep Increase in Car Sales: Ken Research
GURUGRAM, India, March 30, 2022 /PRNewswire/ --
Key Findings
- Online Classified are analysing the patterns of purchase by customers and capturing it through fintech and other tools such as digital marketing, enabling them to provide tailor-made solutions for customer. AI and ML are being used to transform the car buying experience for customers.
- The Dealers in the used car market are scattered and small scale. The primary reason behind this was the law introduced by the Korean Government in 2013 which has been revoked in 2019. Since 2022, domestic new Car players such as Kia and Hyundai are expected to enter the market and provide quality vehicles certified by them.
- Local cars, such as those from Hyundai and Kia, have become pricier, which lowered the entry bar and created room for imported cars to join the market. This will propel growth of the organized used car sector as the sales occurring through the certified pre-owned car dealerships in the country will increase.
Growing demand for Authorized Used Cars Outlets in the Market: Consumers are either scammed by a dealer or they try to directly purchase a used car from an owner to avoid scams. The situation is serious for consumers in terms of both intangible and tangible damages they can suffer. This has led foreign carmakers to actively run secondhand car businesses in South Korea with their own brand authentication systems, to instill trust in drivers buying their used models.
Increasing Used Car Sales due to Covid-19: The pandemic made owning a car an unavoidable aspect of an individual's life as travelling via public transport can be risky. People who preferred public transport during the pre-Covid times are now the potential customers of the used cars market. Subsequently, the pandemic does not seem to completely subside soon, the demand for used cars will keep increasing. Since most of these people who could not afford a car in the first place would prefer the most optimal solution available, that is, purchasing a pre-owned car.
Growing popularity of Digital Showrooms: The online space in the used cars market has been gaining traction over time on account of Covid-19 protocols that forced several dealers to introduce virtual showrooms. These digital platforms help facilitate minimum in-person contact during the process of selling a car by providing 360 degree view of the interiors of the car to enhance digital experience of consumers. Use of advanced technologies such as AI is helps to valuate car online by providing pictures.
Request for Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTE1MDY3
Improved Focus on Value-Added Services: Since there are a higher proportion of organized players in the used cars segment, more dealers have shifted their focus on providing value-added services to survive the increasing competition. It has been observed that many of the multi-brand dealers too have started providing additional services such as extended warranty, insurance, after sales services, assistance in paperwork, etc., to become a 'one-stop' destination for used car buyers.
Organized Segment's Share to Rise: Organized dealers which include authorized or multi brand dealerships with higher inventory or more number of physical outlets in South Korea, contribute to the majority of the market share. The share of organized dealers is expected to further rise in the future as big domestic players are anticipated to enter the market. Moreover, buying used cars from organized players comes with the added advantage of availing maximum value added services. Especially for Medium valued to Premium used cars, it is seen that customers are more concerned about the after sales services and warranties that are provided for the vehicle.
Analysts at Ken Research in their latest publication "South Korea Used Car Market Outlook To 2026: Relaxed Government Regulations on Big Companies Entering Used Car Market to Facilitate Increase in the Used Cars Sales and Improve the Organized Market Share" observed that South Korea is in a growth phase in the used car market in South East Asia and is gradually recovering from the economic crisis after the pandemic. The increasing E-Commerce penetration is giving a boost to this industry. Going forward, the industry is expected to demonstrate further growth in the short-medium term fueled by the growth of online used car platforms that provide convenience to both buyers and sellers. South Korea Used Car Market is expected to grow at a CAGR of 1% on the basis of sales volume over the forecast period 2021P – 2026F.
Key Segments Covered
- By Market Structure
- Organized
- Unorganized
- By Organized Channel Source of Lead generation
- Online
- Dealership walk-ins
- By Sales Channel
- B2C
- C2C
- By Type of Car
- Luxury Sedan
- Sedan
- Hatchback
- SUV
- MPV
- Others (Sports car, Station wagon)
- By Engine Size
- 2000 CC and Below
- 2000 CC – 3000 CC
- 3000 CC – 4000 CC
- 4000 CC and Above
- By Brand
- Hyundai
- Kia
- GM Korea
- Renault Samsung
- Ssangyong
- Benz
- BMW
- Genesis
- Audi
- Volkswagen
- Others (Includes both domestic and international brands)
- By Region
- Gyeonggi
- Seoul
- Gyeongnam
- Gyeongbuk
- Incheon
- Busan
- Chungnam
- Dae-Gu
- Jeonnam
- Jeonbuk
- Chungbuk
- Gangwon
- Gwangju
- Daejeon
- Ulsan
- Jeju
- Sejong
- By Age
- 0-2 Years
- 2-4 Years
- 4-6 Years
- 6-8 Years
- 8-10 Years
- More than 10 Years
- By Mileage
- Less than 20,000
- 20,000 – 40,000 Km
- 40,000 – 60,00 Km
- 60,000 – 80,000 Km
- 80,000 – 100,000 Km
- Over 100,00 Km
- By Fuel
- Petrol
- Diesel
- Electric
- Others (Petro-Electric, Diesel-Electric, etc.)
- By Transmission Type
- Auto
- Manual
- Others (Semi-Auto, CVT)
- Companies Covered
- Authorized Dealers
- Benz Hansung
- BMW Deutsch Motor
- BMW Bavarian Motors
- KCC Auto
- C2B/C2B2C/B2C
- K-Cars
- Aj SellCar
- Autohands
- Hey Dealer
- U-Car
- Autoplus
- Online Portals – Online Auto Classified Platforms
- Encar
- Kb Cha Cha Cha
- Auction Players
- Hyundai Glovis
- Lotte Rental – Auction
- Aj SellCar Auction
- K Car Auction
Time Period Captured in the Report:-
- Historical Period – 2015-2021P
- Forecast Period – 2021P-2026F
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- South Korea Used Car Market Overview
- South Korea Used Car Market Size, 2015-2021P
- South Korea Used Car Market Segmentation, 2021P
- Growth Drivers in South Korea Used Car Market
- Issues and Challenges in South Korea Used Car Market
- Government Regulations
- Ecosystem and Value Chain of Used Car Industry in South Korea
- Customers Purchase Decision Making Parameters
- Cross Comparison between Major Authorized Dealers and Multi-brand Dealers
- Snapshot on Online used car market
- Future Market Size and Segmentations, 2021P - 2026F
- Covid-19 Impact on the Industry & the way forward
- Analysts' Recommendations
- Number of Used Car Dealers South Korea
- Number of Online Used Car Companies South Korea
- Used Car to New Car Ratio South Korea
- Number of Used Hatchbacks sold South Korea
- Number of Used Sedans sold South Korea
- Number of Used SUVs sold South Korea
- Number of Used Sports Cars sold South Korea
- Number of Used MPVs sold South Korea
- Used Car Sales South Korea
- Hyundai Market Share
- Honda Market Share
- GM Korea Market share
- Region Wise Used Cars Sales South Korea
- Used Car Current Status South Korea
- Used Car Present Status South Korea
- Online portals for Used Car South Korea
- Online classified players used car space South Korea
- Auctioned Cars in South Korea
- Benz Hansung Used Car Market
- BMW Deutsch Motor Market
- BMW Bavarian Motors Market
- KCC Auto Market
- Encar Market
- Kb Cha Cha Cha Market
- Hyundai Glovis Market
- Lotte Rental – Auction Market
- Aj SellCar Auction Market
- K Car Auction Market
- Covid-19 Impact South Korea Used Car Market
- Used Car Market South Korea
- Number of Used Car Companies in South Korea
- Number of Online Used Car Companies in South Korea
- Used Car Domestic Players South Korea
- Used Car Foreign Players South Korea
For more information on the research report, refer to below link:-
South Korea Used Car Market Outlook To 2026
Related Reports:-
The Used Car industry in Indonesia has grown at a CAGR of 4.5% on the basis of gross transaction value over the period 2014-2019 and at a CAGR of 2.0% on the basis of sales volume. The overall economic slowdown, as well as the slowdown of the automotive industry due to a reduction in purchasing power of consumers, contributed to the decline in sales during 2016-2017. The entry of various financing companies in the used car industry, as well as the launch of OEM-certified used car programs, has been the major growth drivers of the industry. The boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.
The used car industry in Saudi Arabia has grown at a CAGR of 0.8% on the basis of gross transaction value over the period 2014-2019 and declined at a CAGR of -2.4% on the basis of sales volume. The departure of expats from the country and the economic instability contributed to the decline in sales during 2016-2017. The addition of women drivers and the high levels of disposable income in the country are one of the major growth drivers of the industry. Boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.
Malaysia's Used Car sector is in the late growth phase, having grown at a CAGR of ~1% during 2015-2020. Increasing demand for private vehicles, increasing purchasing power, easy availability of finance, increased govt. incentives to ensure the sale of new cars are the main reasons behind positive growth in used car revenue. Other major drivers include drop-in use of public transport due to the pandemic and emergence of online players which have made the overall process of selling and buying used cars smoothly, thus boosting sales.
Philippines Used Car market is in its growth phase, having registered a five-year CAGR of xx% (2016-2021) as the total value of sales increased from PHP xx Billion in 2016 to PHP xx Billion in 2021. The market size by volume increased from xx cars in 2016 to xx cars in 2021 while registering a five-year CAGR of xx% in the period. There are a number of growth drivers which has resulted in expansion of the market; these include a surge in the demand of private cars, increasing per capita income, convenient financing facilities, increased internet penetration and enhanced digitalization of the used cars space. Customers of the used cars can be divided according to their needs generally belonging to the working age group.
Vietnam's used car market experienced a slow down between 2015 and 2021 on the basis of gross transaction value. The decline in GTV as well as sales volume of used car industry is attributed to various government initiatives to support the growth of domestic automotive industry, and policies implemented such as reduction in import tax to 0% for cars imported from ASEAN region. Historically, motor bikes have always remained the top choice among the consumers due to high concentration of population belonging to rural regions having low purchasing power. However, due to rapid urbanization and fast growing middle class, the demand for new passenger cars has been growing significantly in recent times which in turn is contributing to the growth of automotive industry. Also, increased awareness on health and hygiene followed by the advent of COVID-19 is acting as a catalyst for the shift in consumer's preference towards availing private transportation medium compared to public transportation. Leveraging the growing internet penetration rate, various online classified players launched their operation in Vietnam post 2013, such as Oto and Carmudi. The increasing preference of consumers towards availing digital medium for their purchases has enhanced the sales prospect via C2C channel through classified platforms.
More Automotive And Automotive Components Market Research Reports By Ken Research https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/SC-100-43.html
Follow Us:-
LinkedIn | Instagram | Facebook | Twitter | YouTube
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
Logo: https://mma.prnewswire.com/media/661352/Ken_Research_Logo.jpg
Share this article