Indonesia Used Car Market Outlook to 2023
Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales
Region:Asia
Product Code:KR803
May 2019
132
About the Report
The report titled "Indonesia Used Car Market Outlook to 2023 - Rising Popularity of Online Platforms and Reduction in Average Ownership Period to Drive Used Car Sales" provides a comprehensive analysis of used car/ pre-owned car services in Indonesia. The report focuses on the overall market size, segmentation by market structure (unorganized and organized sector), by unorganized distribution channel of (C2C and local dealership) and organized distribution channel (multi-brand dealership, repossessed cars, OEM Certified outlet), by unorganized and organized lead generation source (dealership walking, online auto portal), by type of used cars (MPV/Sedan, Economy/Hatchback, SUV), sales by major cities (Jakarta, Surabaya, Medan, Bandung, and others), by type of used passenger cars (Private/Commercial), by kilometers driven, by year of manufacture, by fuel type (gasoline, diesel, and others). The report also covers the overall competitive landscape; government role and regulations, issues and challenges, trends, and developments. The report concludes with market projections for the future, highlighting the major opportunities and cautions.
Indonesia Used Cars Market Segmentation
By Distribution Channel: Unorganized- Due to higher discounts given by the unorganized market, the majority of transactions conducted in the market are through C2C or local dealership channels. The local dealership channel controlled a major proportion of the total sales volume in the unorganized used car market during 2018. C2C trade-in had the remaining where potential buyers and sellers negotiate themselves without any involvement of a third party.
Organized- Within the organized space, multi-brand showrooms and OEM-certified outlets took had a massive market share in terms of sales volume whereas, the remaining volume share was captured by the bank-repossessed cars segment during the year 2018
By Type of Used Car: MPVs and sedans have dominated the sale of used cars in Indonesia during 2018 due to the increase in demand for bigger cars because of growing family sizes in Indonesia. Economy and hatchback had the second-highest market share followed by SUV.
By Major Cities: Jakarta dominated the sales of used cars in Indonesia because of the large population base and high disposable income. Surabaya had the second-highest sales followed by Medan, Bandung, and other small cities.
By Kilometers driven: Pre-owned cars are driven for a range of 50000-80000 km collectively dominated the Indonesian Used car market. Cars that have clocked around 50,000-80,000 km are highly affected in terms of checking mechanical conditions (car battery and others) of the vehicle, physical conditions (tires, paint, scratches as well as dents and others) causing wear and tear thus, reducing the total price of the vehicle.
Competitive Landscape in Indonesia Used Cars Market
Executive Summary
- Research Methodology
- Indonesia Used Cars Market Overview and Genesis
- Business Models Prevalent in Indonesia Used Cars Market
- Indonesia Used Car Market Size, 2013-2018
- Ownership Transfer Registration for Cars in Indonesia
- Indonesia Used Car Market Segmentation
- Customer Profile in Indonesia Used Car Industry
- Decision Making Process For Buying and Selling Used Cars in Indonesia
- Government Regulation in Indonesia Used Car Market
- Trends and Developments in Indonesia Used Car Market
- Issues and Challenges in Indonesia Used Car Market
- Comparative Landscape in Indonesia Used Cars Market
- Indonesia Used Car Market Future Outlook and Projections, 2019-2023
- Analyst Recommendations for Indonesia Used Cars Market
- Macroeconomic Factors Affecting Indonesia Used Cars Market, 2013-2023
Products
Key Target Audience
- Automobile Companies
- OEM certified companies
- Online Classifieds
- Multi-Brand Organized Car Dealers
Time Period Captured in the Report:
- Historical Period - 2013-2018
- Forecast Period - 2019-2023
Companies
Key Segments Covered
Market Structure
- Unorganized Sector
- Organized Sector
- Distribution Channel
- Unorganized(Local dealership, C2C)
- Organized (Multi-brand dealership and OEM certified, Repossessed cars)
- Unorganized and Organized lead generation source
- Dealership Walk-ins
- Online Auto Portal
Type of used cars
- MPVs/Sedan
- Economy/Hatchback
- SUV
- Sales by major cities
- Jakarta
- Surabaya
- Medan
- Bandung
- Others
Type of Used passenger cars
- Private
- Commercial
Kilometers driven
- >5000
- 5000-20000
- 20000-50000
- 50000-80000
- 80000-120000
- 120000 and above
Year of manufacture
- Before 2000
- 2000-2002
- 2003-2005
- 2006-2008
- 2009-2012
- 2013-2018
Fuel Type
- Gasoline
- Diesel
- Others(Hybrid, electrical, CNG)
Companies Covered:
- Multi-brand Dealerships( Mobil88, Andre Motors, Auto2000, Tunas, Sun Star motors, and others)
- OEM Certified Dealerships( Toyota Trust, Hyundai Autosafe, Mercedes certified, BMW premium select)
- Online auto portals( OLX, Mobil123, Carmudi, Mobil88, OTO others)
Key Topics Covered in the Report
Table of Contents
1. Executive Summary 13
2. Research Methodology 15
2.1. Market Definitions 15
2.2. Abbreviations 16
2.3. Market Size and Modeling 17
Market Sizing Approach: Gross Transaction Value for Used Cars 18
Variables Dependent and Independent 18
Multifactor based Sensitivity Model 18
Regression Matrix 20
Limitations 20
Final Conclusion 21
3. Indonesia Used Cars Market Overview and Genesis 22
4. Business Models Prevalent in Indonesia Used Cars Market 25
4.1. Online Business Models 25
4.2. Offline Business Models 26
Value Chain Analysis in Indonesia Used Car Industry 27
5. Indonesia Used Car Market Size, 2013-2018 28
6. Ownership Transfer Registration for Cars in Indonesia 32
7. Indonesia Used Car Market Segmentation 35
7.1. Market Structure (Organized and Unorganized), 2018 35
7.1.1. By Unorganized Sales Channels (Local Dealership and C2C) and Organized Sales Channels (Multi-Brand Showrooms and OEM Certified Outlets and Repossessed Cars), 2018 40
7.1.2. By Unorganized Local Lead Generation Source (Dealer Walk-ins and Online Car Portal) and Multi-Brand Lead Generation Source (Dealer Walk-ins and Online Car Portal), 2018 42
7.2. By Type of Used Car (MPVs / Sedans, Economy / Hatchbacks and SUVs), 2018 43
7.3. By Major Cities (Jakarta, Surabaya, Medan, Bandung and Others), 2018 46
7.4. By Used Passenger Cars (Private and Commercial Used Passenger Cars), 2018 49
7.5. By Kilometers Driven (Less than 5,000 km; 5,000-20,000 km; 20,000-50,000 km; 50,000-80,000 km; 80,000-120,000 km and Above 120,000 km), 2018 53
7.6. By Year of Manufacture (< 2000, 2000-2002, 2003-2005, 2006-2008, 2009-2012 and 2013-2018), 2018 56
7.7. By Fuel Type (Gasoline, Diesel and Others), 2018 60
8. Customer Profile in Indonesia Used Car Industry 63
8.1. By Age, 2018 63
8.2. By Gender, 2018 64
8.3. By Income Group, 2018 65
9. Decision Making Process For Buying and Selling Used Cars in Indonesia 67
9.1. Key Purchase Criteria for Buying a Used Car in Indonesia and Relative Weightage of these Criteria 67
9.2. Key Sales Criteria for Selling a Used Car in Indonesia 68
Influence on Pricing Structure 69
10. Government Regulation in Indonesia Used Car Market 71
10.1. Import of Automobiles 71
10.2. Financing Options 71
Scenario 1 - Low Income Individual Buying an Economy/Hatchback Car 72
Scenario 2 - Middle Income Individuals Purchasing Sedan/MPV 73
Scenario 3 - High Income Individual Purchasing SUV/Luxury Car 74
10.2.1. General Requirement and Documentation for Used Car Financing 75
10.3. Legal Protection Toward Consumers of Showroom in Purchasing Used Cars That are Incompatible with Those Presented in Advertisement 76
11. Trends and Developments in Indonesia Used Car Market 79
Increasing Number of Online Used Car Listings in Indonesia 79
Regional Disparity in Car Listings and Sales in Indonesia 80
Emergence of Multi-Brand Showrooms in Indonesia 80
Brand Coscious Buyers in Indonesia 81
Surge in New to Used Car Ratio in Indonesia 82
Decreasing Average Ownership of Cars 83
Lucrative Interest Rates 84
12. Issues and Challenges in Indonesia Used Car Market 85
Lack of Inspection/ Quality Certification of Used Cars in Indonesia 85
Lack of Compliance 86
Largely Unorganized Market Segment 86
Asymmetric Information 87
13. Comparative Landscape in Indonesia Used Cars Market 88
13.1. Competition Scenario in Indonesia Used Cars Market 88
13.2. Leads Generated by Major Online Portals (OLX Indonesia, Mobil123, Carmudi, Mobil88 and Others and Self Websites) Operating in Indonesia Used Car Market, 2018 89
13.2.1. Leads Generated for Multi-Brand Dealership by Organized Online Portals (OLX Indonesia, Mobil123, Carmudi, Mobil88 and Others and Self Websites) Operating in Indonesia Used Cars Market, 2018 92
13.2.2. Leads Generated for Local Dealerships by Organized Online Portals (OLX Indonesia, Mobil123, Carmudi and Others), 2018 93
13.3. OEM Certified Companies (Auto Safe Hyundai, Toyota Trust, Mercedes Certified and BMW Premium Select) Operating in Indonesia Used Cars Market, 2018 94
13.4. Company Profile of Major Online Portals (OLX Indonesia, Mobil123, Carmudi Indonesia and Mobil88) Operating in Indonesia Used Cars Market 96
13.4.1. OLX Indonesia 96
Business Model of OLX Indonesia 99
13.4.2. Mobile123 101
Business Model of Mobil123 103
13.4.3. Carmudi Indonesia 105
Business Model of Carmudi Indonesia 107
13.4.4. Other Online Portals (Oto.com, BeliMobilGue and Carsome) Operating in Indonesia Used Cars Market 109
13.5. Major Multi-Brand Dealerships (Mobil88, Andre Motors, Auto2000, Tunas and Sun Star Motors) Operating in Indonesia Used Cars Market 113
14. Indonesia Used Car Market Future Outlook and Projections, 2019-2023 116
14.1. By Gross Transaction Value and Sales Volume, 2019-2023 116
14.2. By Market Structure (Unorganized Sector and Organized Sector), 2023E 120
14.2.1. By Unorganized Sales Channels (Local Dealership and C2C) and Organized Sales Channels (Multi-Brand Showrooms and OEM Certified Outlets and Repossessed Cars), 2023E 121
14.2.2. By Unorganized Local Lead Generation Source (Dealer Walk-ins and Online Car Portal) and Multi-Brand Lead Generation Source (Dealer Walk-ins and Online Car Portal), 2023E 122
15. Analyst Recommendations for Indonesia Used Cars Market 123
16. Macroeconomic Factors Affecting Indonesia Used Cars Market, 2013-2023 126
16.1. New Passenger Car Sales in Indonesia, 2013-2023 126
16.2. Per Capita Household Final Consumption Expenditure in Indonesia, 2013-2023 127
16.3. Working Population in Indonesia, 2013-2023 128
16.4. Urban Population in Indonesia, 2013-2023 129
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