Global Used Car Market: An Overview
The global used car market report is an in-depth study of economic growth indicators, drivers, and forecasts during 2018-2026. The used car market is expected to witness major growth during the forecast period. On one hand, the demand for new cars continues to fall. On the other hand, the high-interest rates are preventing consumer’s new cars, and economic recovery is also slow. Moreover, new trends like electric vehicles are on the horizon. Hence, next-gen vehicles laden with advanced technology are expected to make consumers hold-off purchases for a long duration. Furthermore, this is expected to be major boons for used cars as trends like hail-a-cab continue to be expensive and non-feasible, especially in rural regions. The uncertainty in purchases of new cars is expected to drive robust growth in the sales of used cars, despite the conventional trends set against it.
Global Used Car Market: Notable Developments
Chinese used car market witness a growth 7.4% in September 2019. In total, over 1.3 million used cars were sold in the Chinese market as consumers lined up for a bargain. The growth is commendable as earlier the Chinese government had restricted reallocation of used cars in new regions. The government recently announced a policy abolishing the restriction, which zoomed car sales upwards significantly. The portion of used cars in the market stands at 29% of total sales and presents a bright horizon of opportunities for players in the global used car market.
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Luxury car-makers like BMW, Audi, and Mercedes have also turned towards the used car market for growth. In a bid to raise sales, the luxury makers have taken to online platforms to reach new customers with their expertise in car making. Audi’s car platform saw a jump of 25% in sales in 2019 as compared to 2018 in India. Moreover, Mercedes also joined the race in October as sales of new cars continue to plummet. This is in line with high-taxes on luxury cars in the new car market as in India, these taxes can amount to 50% on a new vehicle. However, the government taxes for used cars vary around 18% which is a major relief for carmakers as well as consumers. The new opportunities through e-commerce, and high-prestige for luxury cars in emerging markets are expected to create robust opportunities for growth for players in the global used car market.
Global Used Car Market: Drivers and Restraints
The rising demand for cars, trends like hail-a-cab, and growing affordability due to rising disposable incomes are expected to drive growth. The trends like hail-a-cab have dampened prospects of many new car manufacturers. This can be a positive for used car market as increasingly major car makers are planning to get-into rent-a-car trends. Recently, Mahindra, one of the largest Indian car manufacturer expressed desire to get into the rent-a-car market. The company is finalizing plans to enter the market, which will provide a major boost to used cars market. With trends like these, the prestige associated with new cars will go down, especially in Asia Pacific, where owning a used vehicle faces a major cultural barrier. The changing perception of used cars, entry of major luxury makers in the market, and growing demand for used cars are expected to drive growth for the global used car market.
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Global Used Car Market: Geographical Analysis
The global used car market report is segmented on the basis of key regions around the globe including North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.
The study is a source of reliable data on:
- Market segments and sub-segments
- Market trends and dynamics
- Supply and demand
- Market size
- Current trends/opportunities/challenges
- Competitive landscape
- Technological breakthroughs
- Value chain and stakeholder analysis
The regional analysis covers:
- North America (U.S. and Canada)
- Latin America (Mexico, Brazil, Peru, Chile, and others)
- Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
- Eastern Europe (Poland and Russia)
- Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
- Middle East and Africa (GCC, Southern Africa, and North Africa)
The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.
Highlights of the report:
- A complete backdrop analysis, which includes an assessment of the parent market
- Important changes in market dynamics
- Market segmentation up to the second or third level
- Historical, current, and projected size of the market from the standpoint of both value and volume
- Reporting and evaluation of recent industry developments
- Market shares and strategies of key players
- Emerging niche segments and regional markets
- An objective assessment of the trajectory of the market
- Recommendations to companies for strengthening their foothold in the market
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.