The Philippines used car market showed resilience during the pandemic, with a quick recovery in sales driven by online platforms and increased demand for personal vehicles.
Increasing Online Presence: The year 2020 saw a tremendous increase in the usage of the online space for buying and selling cars. Although online classified platforms such as Carmudi, AutoDeal, Carousell, and Philkotse were gaining traction for quite some time, the pandemic made it absolutely necessary for most of the dealers to have an online presence. Approximately 80% of the lead generation for used cars in the year 2020, happened via the online platforms. Several brands introduced the concept of virtual showrooms to promote minimum contact and social distancing between buyers and sellers.
Preference to Own a Personal Car over using Public Transportation: Since the onset of the pandemic, public transport and ride sharing are no longer considered to be a safe option. Therefore, a number of individuals who used to travel by public mode of transportation have started preferring to own a private car. Since buying a brand-new car is somewhat expensive, this population demographic has started looking into the used cars segment.
Platform Economy Carving a Niche in the Used Cars Segment: The Used Cars segment (specifically the online classifieds market) has transformed into a platform economy. Buyers and sellers of used cars do not have to look for an intermediary but can directly connect with each other on the classified platforms.
Impact on Used Car Sales due to Covid-19: Multiple trends in the used cars industry were observed since the onset of Covid-19. Although, the used car market witnessed significant reduction in sales (similar to the new car market) in 2020 during the months of March, April and May, it was on the upswing once the lockdown was lifted. The increase in the sales in the following months was somewhat able to mitigate for the losses incurred during the months having complete nationwide lockdown (March to May 2020).
Increased Financing Facilities: Although a finance crunch was observed during Covid, the financing facilities had been historically growing for the used cars segment. Several foreign financing companies leveraged the vacuum in this space, following which, a number of local banks entered the finance segment of the used cars industry.
Analysts at Ken Research in their latest publication “Philippines Used Car Market Outlook To 2025 (Second edition): The Pandemic Incited Increased Demand for Used Cars coupled with Increased Internet Penetration provides for Resilience in the Used Cars Market during the Economic Crisis–” observed that Philippines used car market is in a growth and is gradually recovering from the economic crisis after the pandemic. The increasing credit appetite of banks fueled by competition from foreign financing companies is giving a boost to the used car industry of Philippines. The industry is expected to demonstrate a moderated growth in the short-medium term fueled by growth of online used car platforms that provide convenience to both buyers and sellers.
Key Segments Covered: –
By Market Structure
Organized
Unorganized
By Sales Channel
Multi-brand Dealers
Direct Dealership Sales Agents
Bank Auctions
C2C (Customer to Customer) Transactions
By Source of Lead generation
Online
Dealership walk-ins
By Car Segment
Sedan
Hatchback
SUV
MPV
Pickup Vans
Others (convertibles, coupe, crossover, sports vehicles, and many more)
By Price
Less than PHP 100,000
PHP 100,000-300,000
PHP 300,000-500,000
PHP 500,000-700,000
PHP 700,000-1,000,000
More than PHP 1,000,000
By Brand
Toyota
Mitsubishi
Hyundai
Ford
Nissan
Honda
Isuzu
Suzuki
Others (Kia, Mazda, Mercedes, Audi, and many more)
By Region
Metro Manila
Northern Luzon
Southern Luzon (except Metro Manila)
Visayas
Mindanao
By Ownership period
Less than 2 years
2-4 years
4-6 years
6-8 years
More than 8 years
By Mileage
Less than 10,000 Kms
10,000-20,000 Kms
20,000-50,000 Kms
50,000-75,000 Kms
75,000-100,000 Kms
Above 100,000 Kms
By Fuel
Petrol
Diesel
Others (Hybrid and Electric)
Companies Covered
OEM Dealerships
Toyota Certified
Nissan Intelligent Choice
BMW Premium Selection
Mercedes Benz Certified Pre-owned
Banks (Repossessed Car Auctions)
EastWest Bank
Security Bank
BDO Unibank
Online Portals – Online Auto Classified Platforms
Carmudi
Carousell
AutoDeal
Automart
Zigwheels
Philkotse
Multi-Brand Dealers
Carmax
Carmix (by Lausgroup)
Automobilico
All Cars
Five Aces
Berylle Car Sales
Time Period Captured in the Report: –
Historical Period – 2015-2020
Forecast Period – 2021-2025
Key Topics Covered in the Report
Philippines Used Car Market Overview
Philippines Used Car Market Size, 2015-2020
Philippines Used Car Market Segmentation, 2020
Growth Drivers in Philippines Used Car Market
Issues and Challenges in Philippines Used Car Market
Government Regulations
Ecosystem and Value Chain of Used Car Industry in Philippines
Customers Purchase Decision Making Parameters
Cross Comparison between Major OEMs and Multi-brand Dealers and Company Profiles & Product Portfolios
Snapshot on Online used car market
Future Market Size and Segmentations, 2020-2025E
Covid-19 Impact on the Industry & the way forward
Pricing Analysis (By Age, Mileage, Brand and Car type)
Depreciation Calculation Tool
Analyst Recommendations
For More Information on the research report, refer to below link: –
Philippines Used Car Market Future Growth
Related Reports by Ken Research: –
Philippines Auto Finance Market Outlook To 2024- Growing Prominence Of Captive Finance And Surge In Used Car Sales Supporting Disbursement For Auto Loans”
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Support@kenresearch.com
+91-9015378249
The article discusses the resilience and recovery of the Philippines used car market during the pandemic.
Sales initially dropped but quickly recovered due to increased online presence and demand for personal vehicles.
Online platforms became essential for lead generation and sales, facilitating direct connections between buyers and sellers.
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