Market Size of Indonesia Used Car Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.79 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Used Car Market Analysis
Indonesia used car market size is estimated at USD 56.34 billion in the current year, and is expected to reach USD 74.48 billion, registering a CAGR of 5.79% during the forecast period (2023-2028).
- The used car market saw a significant dip due to the COVID-19 outbreak and subsequent lockdowns. Though the slump was not as significant when compared to the new car sales due to the buyer's reluctance and lower disposable cash in hand for new vehicle purchases. But now, as life comes to normalcy, the Indonesian Used Car Market is expected to gain back its pace in the following years.
- The pandemic made owning a car an unavoidable aspect of an individual's life, as traveling via public transport was risky. People who preferred public transport during the pre-Covid times are now potential customers of the used cars market.
- Due to the increasing digitization and the ability of companies to provide immersive purchase experiences remotely, the Indonesian used car market is expected to witness significant growth. Furthermore, the rise in the value-added service offering and the variety of finance providers offering credit for used cars will also contribute to the growth of the used car market in the region. However, the higher interest rates might turn around some potential customers hampering the market's growth.
- For instance, in September 2021, Mobil88 launched the Mo88i application to make buying and selling used cars easier. Mo88i is a platform for buying and selling used cars that are trusted, easy, fast, and efficient, beginning with car inspections and estimated bid prices and ending with financing and vehicle insurance submissions.
- Another major factor aiding the market growth is the emergence of various Non-Banking Finance Companies offering low-interest rates compared to banks and flexible installment options.
