Insights

DISCOVER

COMPANY

Survey

SURVEY

Consulting

COUNSULTING

Create New Account

Book discovery call

Philippines Used Car Market Outlook To 2026 (Third Edition)

Driven by the Pandemic Incited New Opportunities for Used Car Dealers and Increased Penetration in the Online Space for Used Car Transactions

Region:Asia

Author(s):Roshan Mishra and Himanshu Gupta

Product Code:KR1127

Download Sample Report

Published On

March 2022

Total pages

Download Sample Report

About the Report

The report titled “Philippines Used Car Market Outlook To 2026 (Third Edition): Driven by the Pandemic Incited New Opportunities for Used Car Dealers and Increased Penetration in the Online Space for Used Car Transactions” provides a comprehensive analysis of the used car market trends and performance in the Philippines. The report covers several aspects such as the volume of used cars & market size, value chain, business models, customer behavior, target audience, trends & developments, growth drivers, issues & challenges faced by the industry, government regulations, SWOT analysis, and other aspects. Further, the report focuses on major market segmentations by market structure, origin of sale, ticket size, region, type of vehicle, brand, replacement period, by mileage, etc. Philippines Used Car Industry report concludes with projections for future of the industry including forecasted sales revenue and volume by 2026, impact of Covid-19, a snapshot on the online used car market, and analysts’ take on the future market scenario.

Philippines Used Car Market Overview and Size:

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 the 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.

Philippines Used Car Market Segmentations

By Market Structure (Unorganized, and Organized): Organized market constitutes significant share in the overall used car market of the Philippines in terms of sales volume in the year 2021. Majority of the vehicle buyers in the country find it easy to trade used cars through the unorganized market channel.

By Sales channel (B2C- Multi-brand Dealers, DDSAs, and Bank Repossessed Car Auctions): Multi Brand Dealership outlets are dominating in Philippines due to the large portfolio of vehicles provided with a huge space for negotiation on purchase. However, DDSA-certified cars are relatively in better condition due to certification and high-quality of refurbishment.

By Source of Lead generation (Online, Dealership walk-ins): In Philippines, selling and buying a used vehicle via online classified platform is the most convenient method for customers and dealers. The online channel provides an easy way to buy/sell used cars for organized players. Since the volume of cars listed by dealers is huge, therefore they are eligible for a bulk listing discount from the online classified pages and online used car portals.

By Type of Car: Among this segment Sedans are the market leaders with the highest market share in 2021 followed by SUVs, hatchback, pickup vans, MPVs and others. SUV are one of the most common types of cars that are sold in the market. Since Sedans suit the above requirements best, they are highly preferred by the used car buyers.

By Price: The average ticket size of a used car market is growing over the years. Most of the used/pre-owned cars in Philippines are priced in the range of PHP 300k and PHP 500k.

By Brand: Toyota is the market leader in Philippines accounting for the largest share of sale of used cars by volume. Japanese brands such as Toyota, Honda, Nissan, Mitsubishi, etc., are the most preferred due to strong brand preference, reliability, longer life span, and higher retention value of the used vehicle

By Region: Metro Manila dominates the used vehicle market in Philippines as most of the organized players operate in this region. Since, it is the most economically developed region in the Philippines, the average age of replacement of cars is quite low, leading to more used cars availability in the area.

By Average Replacement Period: It has been observed that average replacement period of a car in Philippines is 4 to 5 years. Most of the individuals in Philippines sell their vehicle after using it for these many years in order to gain maximum utility and get a fair market price after considering depreciation.

By Kilometers Driven: The maximum number of cars sold in the year 2021 fell in the range of 20,000 to 50,000 kilometers of mileage.

By Fuel: Most Filipinos prefer either gasoline or diesel cars. When it comes to hybrid and electric, their share in the Philippines market is almost negligible given their high prices.

Snapshot on Online Used Car Landscape

Most Filipinos prefer buying the used car from a dealer. However, with increasing internet penetration, the online sale for used car has been gaining traction in the last few years. Facebook plays a key role in expanding the used cars market in Philippines. Emergence of online auto-portals and classified platforms such as Carousell, Carmudi, AutoDeal, Philkotse, Automart, etc., have provided increased visibility and facilitated the sale of used cars. However, there is no organized platform for direct B2C & C2C online offering for used car sales currently. Prominent C2B car players such as Carsome are planning to enter the Philippines in the near future.

Competitive Landscape of Philippines Used Car Market

Used Car Market in Philippines is highly fragmented as majority of the market is unorganized. There exists intense competition in the highly fragmented market with various OEM certified, brand authorized dealerships, multi-brand outlets & independent (standalone as well as clustered dealers) operating in the industry. The repossessed car market in Philippines is fairly concentrated, as major banks involved in auctions are only 8-10. Used car dealers in Philippines compete on the basis of number of dealership outlets; value added services, quality checks performed, insurance and finances and portfolio of used cars at their dealership store.

Philippines Used Car Future Outlook & Projections

The used car industry in Philippines is expected to grow in the future at a single digit CAGR over the forecast period (2021P to 2026F). The market structure is expected to be consolidated in the future as the market share of players selling vehicles via organized channel is expected to surge. The average ticket size of a used vehicle is expected to increase as the average replacement period is reducing over time. The customers will tend to switch to used cars and new cars at a rate faster than before, depicting rapid change in consumer preferences. The multi-brand dealers and banks are strategically partnering with online classified pages and online auto portals to make the process accessible and transparent for the buyers. . The customers in the future will make well informed decision as lot of information will made available regarding car pricing at their disposal in the future across various platforms. Certain foreign established C2B players are too considering Philippines Used Car market a growing and profitable venture.

Key Topics Covered in the Report

Executive Summary
Research Methodology
Philippines Used Car Market Overview
Philippines Used Car Market Size, 2016-2021P
Philippines Used Car Market Segmentation, 2021P
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
Philippines Ancillary Services Market
Future Market Size and Segmentations, 2021P-2026F
Covid-19 Impact on the Industry & the way forward
Analysts’ Recommendations

Products

Time Period Captured in the Report: -

Historical Period – 2016-2021P
Forecast Period – 2021P-2026F

Companies

Key Segments Covered

By Market Structure

Organized
Unorganized

By Sales Channel (Organized Segment)

Multi-brand Dealers
Direct Dealership Sales Agents
Bank Repossessed Cars

By Source of Lead generation (Organized Segment)

Online
Dealership walk-ins

By Average Ticket Size

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 Region

Metro Manila
Northern Luzon
Southern Luzon (except Metro Manila)
Visayas
Mindanao

By Type of Vehicle

Sedan
SUV
Hatchback
Pickup Vans
MPV
Others (convertibles, coupe, crossover, sports vehicles, etc.)

By Fuel

Gasoline
Diesel
Others (Hybrid and Electric)

By Type of Vehicle Manufacturer

Japanese
Korean
American
Chinese
German
British
Others

By Brand

Toyota
Mitsubishi
Hyundai
Ford
Nissan
Honda
Isuzu
Suzuki
Others (Kia, Mazda, Mercedes, Audi, etc.)

By Average Replacement 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

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

1. Executive Summary

1. Market Overview

1. Market Segmentation

1. Competitive Landscape

1. Future Scenario

2. Research Methodology

2.1 Market Definitions

2.2 Abbreviations

2.3 Market Sizing and Modeling

2.4 Approach- Market Sizing

2.5 Market Sizing Approach

2.6 Variables Dependent and Independent

2.7 Multifactor Based Sensitivity Model

2.8 Limitations

2.9 Final Conclusion

3. Philippines Used Car Market Value Chain Analysis (Inter-Entity Relationship and Margin Analysis)

3.1. Philippines Used Car Market Ecosystem

3.2. Working Processes Involved in Philippines Used Car market

3.2.1. Upstream Process

3.2.2. Downstream Process

3.3. Business Lifecycle of Philippines Used Car Market

4. Business Models (Offline and Online) of Philippines Used Car Market

4.1. Offline Dealers

4.2. Online Auto Classifieds

5. Customer Profile of Philippines Used Car Market

6. Philippines Used Car Market Size, 2016 – 2021P

6.1. Philippines Used Car Market Introduction and Genesis

6.2. Philippines Used Car Market Size by Transaction Value and by Sales Volume, 2016-2021P

6.3. Philippines Used Car Market by B2C Sales Channel, 2016-2021P

6.4. Philippines Used Car Market by C2B Sales Channel, 2016-2021P

7. Philippines Used Car Market Segmentation, 2021P

7.1. By Market Structure (Organized and Unorganized Market), 2021P

7.2. Market Segmentation by Lead Generation for the Organized Segment (Online Lead Generation
and Dealership Walk-ins), 2021P

7.3. By Origin of Sale for Organized Dealers (Multi-Brand Dealers, Bank Repossessed Cars, and
Direct Dealership Sales Agents), 2021P

7.4. By Average Ticket Size (Less than PHP 100K, PHP 100K-300K, PHP 300K-500K, PHP 500K-700K,
PHP 700K-1M, and PHP 1M and Above), 2021P

7.5. By Region (Metro Manila, Northern Luzon, Visayas, Southern Luzon (Except Metro Manila),
and Mindanao), 2021P

7.6. By Type of Vehicle (Sedan, SUV, Hatchback, Pickup Vans, MPV/AUV, and Others), 2021P

7.7. Type of Fuel (Gasoline, Diesel, Hybrid, and Electric), 2021P

7.8. By Type of Vehicle Manufacturer (Japanese, Korean, American, Chinese, German, British and
Others), 2021P

7.9. By Brand (Toyota, Mitsubishi, Hyundai, Ford, Nissan, Honda, Isuzu, Suzuki, and Others),
2021P

7.10. By Average Replacement Period (0-2 years, 3-4 years, 5-6 years, 6-8 years, and above 8
years), 2021P

7.11. By Mileage (Less than 10k, 10k-20k, 20k-50k, 50k-75k, 75k-100k, Above 100k Kms), 2021P

7.12. Ordinal Ranking of Major Auto Portals

Classified pages and Used Car Online Portals

7.13. Car Parc in Philippines

7.14. Car Parc Trend in Philippines

8. Impact of Covid-19 on Philippines’ Used Car Market

8.1 Multiple Trends

8.2 Increased Demand

8.3 Increased Inventory of Repossessed Cars

8.4 Finance Crunch

8.5 Adverse Impact on Small Used Car Dealers

8.6 Expansion of DDSA

9. Trends and Development in Philippines Used Car Market

9.1 Price Discrepancy

9.2 Citizens Refraining from Using Public Transport

9.3 Motor Vehicle Traffic

9.4 Increased Used Car Awareness

9.5 Sellers Increasing Awareness

9.6 Emergence of Classifieds and Online Auto Portals

10. Challenges and Restraints in the Philippines Used Car Market

10.1 Subjective Pricing

10.2 Lack of Geographical Area in Philippines

10.3 Discrepancy in Value of Transaction between Certified/Repossessed Car Sellers and Multi-Brand Used Car Dealer

10.4 High cost of Finance on Pre-Owned Cars

10.5 Emergence of Electric Vehicle

10.6 Registration and Renewal Process

10.7 Presence of Substitutes

10.9 Number Coding Suspended

11. Growth Drivers of Philippines Used Car Market

11.1 Financing Facilities

11.2 Improved Infrastructure

11.3 Organized Segment to expand

11.4 Train Tax

11.5 Resale Value Comparison Between New and Pre-Owned Cars

11.6 Trade-In Concept Adopted By Dealerships Acting as an Enabler to Used car Market

11.7 Young Population

11.8 Social Media spurring Demand for Pre-owned CARS in Unorganized Market

12. Sales Channels Used in Philippines Used Car Market

12.1 Mutli Brand Dealerships

12.2 DDSA (Direct Dealership Sales Agent)

12.3 Repossesed Car Auctions

12.4 Individual Sellers

13. Government Regulations in the Philippines Used Car Market

14. Competitive Landscape in Philippines Used Car Market, 2021P

14.1. Competition Parameters (Including Price, Retail Space, Brand Awareness, Value Added Services, Technical Know-How, Sourcing of Cars and Condition of the Vehicle)

14.2. Competitive Scenario in Philippines Used Car Market

Competitive Landscape in Philippines Used Car Market

Market Share of DDSA (Direct Dealership Sales Agents)

Banks Auctioning Repossessed Cars Multi-Brand Dealers

14.3. Company Profiles of Direct Dealership Sales Agent (DDSA) (Including Company Overview, USP, Business Strategies, Strength, Weakness, Business Model, Marketing Strategy, Global Operations, Pre-Owned Car Sales by Volume, Recent Development and Value Added Services)

14.3.1. Toyota Certified Philippines

14.3.2. Nissan Intelligent Choice Philippines

14.3.3. BMW Premium Selection

14.3.4. Mercedes-Benz Certified

14.3.5. Honda Cars Philippines Inc.

14.4. Company Profiles of Major Online Auto Portals/ Classifieds (Including Company Overview, USP, Business Strategies, No. of Unique Visitors, Listing Charges, Number of Dealers Associated, Recent Developments)

14.4.1. AutoDeal Philippines

14.4.2. Carmudi Philippines

14.4.3. Philkotse Philippines

14.4.4. Carousell Philippines (OLX Philippines)

14.4.5. Zigwheels Philippines

14.4.6. Automart Philippines

14.5. Company Profiles of major banks selling repossessed cars

14.5.1. EastWest Bank Philippines

14.5.2. BDO UniBank Philippines

14.5.3. Security Bank Philippines

14.6. Company Profiles of Major Multi-Brand Dealers Selling Used Cars in the Philippines Concentration Index of Used car dealers (Combined market share of top 6 offline dealers), 2020

15. Philippines Used Car Market Future Outlook and Projections, 2021P-2026F

15.1. Philippines Used Car Market Size Future Outlook and Projections, 2021P-2026F

Philippines Used Car Market Future Projections by B2C Sales Channel, 2021P-2026F

Philippines Used Car Market Future Projections by C2B Sales Channel, 2021P-2026F

15.2. Philippines Used Car Market Future Segmentation, 2026F

15.2.1. By Distribution Channel (Organized and Unorganized), 2026F

15.2.2. By Lead Generation (Online and Direct Dealership Walk-ins), 2026F

15.2.3. By Origin of Sale (Multi Brand Dealers, Direct Dealership Sales Agent, and
Repossessed), 2026F

15.2.4. By Brand (Toyota, Mitsubishi, Hyundai, Ford, Nissan, Honda, Isuzu, Suzuki, and Others),
2026F

15.2.5. By Age of the car (0-2, 2-4, 4-6, 6-8, and Above 8 Years), 2026F

15.2.6. By Price (less than 100k, 100k-300k, 300k-500k, 500k-700k, 700k-1M, and Above 1 M),
2026F

15.2.7. By Type of Car (Sedan, SUV, Pickup Vans, Hatchbacks, MPV, and Others), 2026F

15.2.8. By Region (Metro Manila, Northern Luzon, Visayas, Southern Luzon, and Mindanao), 2026F

15.2.9. By Type of Fuel (Gasoline, Diesel and Others), 2026F

15.2.10. By Mileage (Below 10,000 Kms, 10,000-20,000 Kms, 20,000-50,000 Kms, 50,000-75,000 Kms,
75,000-100,000 Kms, and Above 100,000 Kms), 2026F

16. Buying Decision Parameters for Used Car In Philippines

17. Snapshot on Philippines Online B2C & C2B Used Car Market

17.1 Key Success Factors for Online Used Car Platforms

18. Philippines Ancillary Services, 2016-2026F

18.1. Philippines Automotive Aftermarket

18.2. Philippines Car Warranty

18.3. Philippines Motor Insurance Premium

18.4. Philippines Overall Used Car Finance

19. Analyst Recommendations

Disclaimer

Contact Us

Why Buy From Us?

Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story

Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Client Choose Us?

400000+ Reports in repository

150+ Consulting project a year

100+ Analysts

8000+ Client Queries in 2022