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..
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players 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.