ASEAN Second Hand Truck Market

ASEAN Second Hand Truck Market Outlook 2034

• The industry in ASEAN was valued at US$ 4.5 Bn in 2023
• It is estimated to grow at a CAGR of 5.3% from 2024 to 2034 and reach US$ 8.0 Bn by the end of 2034

Analysts’ viewpoint

The ASEAN economy is robust with growth in manufacturing, tourism, agriculture, construction, and other sectors. With the growing economies, demand for transportation and logistics services is on the rise.

The rise in need for better road infrastructure to improve trade and commerce with other nations within the region and abroad is a key factor driving the ASEAN second hand truck market growth.

The ASEAN market for used trucks is supported by a strong presence of OEMs in the pre-owned vehicles market. Presence of renowned brands provides customers with a wide variety of options, including various models, sizes, and configurations.

However, it is difficult for SMEs and individual purchasers in ASEAN to obtain finance for the purchase of used trucks. The lack of well-structured financing options limits prospective purchasing power of buyers and impedes industry expansion.

Market Introduction

Second hand trucks, commonly referred to as used trucks or pre-owned trucks, are vehicles that have been previously owned and operated by one or more individuals or organizations before being put up for sale again. The trucks come in various makes, models, sizes, and conditions, offering buyers a wide range of options to choose from based on their specific needs and preferences.

Second hand trucks encompass a diverse range of vehicles, including pickup trucks, semi-trucks, dump trucks, box trucks, and tow trucks. They are typically sold through dealerships specializing in used vehicles, online marketplaces, auctions, and private sales.

The trucks may vary significantly in terms of mileage, age, condition, and price, offering buyers the flexibility to find a suitable option within their budget.

Economic Growth and Infrastructure Development Driving ASEAN Second Hand Truck Market Size

The surge in developmental activities in ASEAN bolsters the demand for transportation and logistics services, thereby, pushing the demand for second hand trucks. The construction and infrastructure sector, including roads, bridges, and real estate development, have significantly accelerated ASEAN's economic growth.

In addition to boosting economic activity, infrastructure projects also spur the demand for transportation services, which are necessary to facilitate the movement of workers, supplies, and machinery.

Road construction and maintenance projects accounted for largest share of infrastructure investments in ASEAN, driving the need for transportation services. Infrastructure development projects improve connectivity within the region and enhance trade links with neighboring countries.

These projects demand a reliable and efficient fleet of trucks to transport equipment, materials, and labor to project sites. This increase in demand for logistics and transportation services boosts the demand for new and used trucks to cater to the infrastructure development activities, thus boosting the ASEAN second hand truck market growth.

Availability of Wide Range of Second Hand Trucks Propelling Market Development

Considering ASEAN’s diverse topography, economic conditions, and business requirements across different industries and sectors, the availability of a wide variety of options in the second hand truck market, to cater to the growing needs of consumers is a key market catalyst.

Irrespective of business needs such as heavy-duty trucks for long-haul transportation, light-duty trucks for local deliveries, or specialized vehicles for specific applications such as construction or agriculture, a wide range of options for truck selection allows buyers to find vehicles that meet their operational requirements and financial barriers.

Trucks that are imported are sourced from nations such as South Korea, Japan, and the United States that have strong used car markets, while the vehicles that are sourced domestically are obtained from regional vendors, dealerships, and auctions.

Purchasers are guaranteed a wide selection of options due to this dual supply chain, including cars with varying features and specifications from different manufacturers all across the globe. All these factors are likely to augment the ASEAN second hand truck market value.

Wide Range of Applications and Supportive Government Policies Boosting Adoption of Pickup Trucks

As per the ASEAN second hand truck market segmentation, in terms of truck type, the pickup truck segment held major share in terms of volume in 2023. Pickup trucks are a common choice for urban transportation because of their reliability and maneuverability through all terrains and off-road tracks.

These trucks are the ideal choice to carry heavy loads on uneven surfaces and extreme weather conditions in ASEAN nations such as Thailand, Indonesia, and Malaysia, where traffic can be difficult. Farmers, construction workers, and other enterprises in rural areas prefer pickup trucks to deliver equipment and commodities.

In some ASEAN countries, there are tax incentives for pickup trucks, making them more attractive to buyers. For instance, in Thailand, tax breaks are offered for eco-friendly pickup trucks, encouraging their adoption.

Import regulations in Indonesia and Malaysia may make it more expensive to import new vehicles. This leads to a robust second hand market for pickup trucks, where buyers can find well-maintained trucks at affordable prices, consequently driving the ASEAN second hand truck market revenue.

High Demand for Light Duty Trucks

Based on truck class, the light duty trucks are dominant as they are multipurpose vehicles that work well in both urban and rural areas. These vehicles can easily maneuver through small streets in crowded cities including Jakarta, Bangkok, and Manila, which speeds up deliveries and pickups.

Small companies, merchants, and retailers in Vietnam, where street vendors depend on trucks for their daily operations, because they are perfect for moving goods, also prefer light duty trucks.

Light duty trucks are the backbone of small businesses in nations such as Cambodia, where they are employed for everything from the transportation of supplies to agricultural products. Thus, the surge in demand for light duty trucks is expected to offer lucrative ASEAN second hand truck market opportunities.

Regional Outlook of ASEAN Second Hand Truck Industry

According to the ASEAN second hand truck market analysis, based on country, Thailand dominated the landscape in terms of volume and revenue in 2023. Thailand's economy has been steadily growing, with the construction and infrastructure sector contributing a significant share in the overall growth.

Second hand trucks are widely used for transportation of construction materials, supplies, and a variety of goods. Agriculture is a crucial sector in Thailand, and second hand trucks are in high demand in rural regions where agricultural activities are prevalent for transporting crops, livestock, and equipment.

Furthermore, in cities such as Bangkok, second hand trucks are crucial for transportation and delivery services. They can easily navigate through the crowded streets, providing efficient transport for goods.

Analysis of Key Players

The ASEAN second hand truck market report highlights that many entities, including importers, dealerships, independent sellers, and internet platforms, compete in the sector. Price competitiveness, marketing campaigns, and attempts to set one's products apart in order to draw clients are all the outcome of this fierce competition.

In the market for second hand trucks, pricing is a major deciding factor for consumers, which fuels steep price competition among dealers. This competition might reduce profit margins and encourage sellers to look for different ways to stay profitable, including value-added services or aftermarket sales.

KHMER24 (ASEAN), MyKhmerCar.com, TOYOTA (ASEAN) CO., LTD., AutoBeeb.com, S.P CAR MARKET CO., LTD, BuyNears.com, Shima Company Ltd., Khmer66, and UD Trucks Corp. are some of the largest ASEAN second hand truck market companies.

Key players have been profiled in the ASEAN second hand truck market report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments

Key Developments

• In August 2023, Mahindra & Mahindra announced plans to explore the ASEAN market and launch a range of pickup trucks through a variety of channels as part of its global plan. The business intends to increase sales of its other vehicles, including the Scorpio N-based pick-up and XUV700.
• In February 2020, UD Trucks established the Used Trucks division, addressing the need to buy from a reputable supplier such as an original equipment manufacturer (OEM), and support ongoing businesses that are completely customer satisfaction driven and ultimately has customer needs in mind.
• In May 2019, MyKhmerCar, the first ASEAN car online market was launched by Australian start-up AsiaCarGroup. It allows local individual sellers and car dealers in ASEAN to easily, quickly, and securely sell their cars, motorbikes, and trucks using the platform, connecting them with potential buyers.

ASEAN Second Hand Truck Market Snapshot