Market Size of Malaysia Used Car Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 25.14 Billion |
Market Size (2029) | USD 35.25 Billion |
CAGR (2024 - 2029) | 5.40 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Malaysia Used Car Market Analysis
The Malaysia Used Car Market size is estimated at USD 25.14 billion in 2024, and is expected to reach USD 35.25 billion by 2029, growing at a CAGR of 5.40% during the forecast period (2024-2029).
The market for used cars in Malaysia is dynamic and rapidly evolving, influenced by economic conditions, consumer preferences, regulatory policies, and technological advancements. Malaysia's used car market is substantial and diverse, reflecting the country's vibrant automotive industry and robust demand for affordable transportation solutions.
With a growing middle class and increasing urbanization, there is a significant need for reliable and cost-effective mobility options, driving the demand for used cars across the country. The availability of a wide range of vehicles catering to different budgetary constraints and preferences adds to the vibrancy of the market.
From compact hatchbacks to spacious SUVs, consumers have access to a diverse selection of pre-owned vehicles from various manufacturers, both domestic and international, providing buyers with ample choices. Affordability plays a crucial role in fueling demand for used cars in Malaysia as new car prices continue to rise, particularly for vehicles equipped with advanced features and technologies.
Many consumers opt for pre-owned vehicles as a cost-effective alternative, attracted by the lower initial purchase price and reduced depreciation rates. The convenience offered by online channels has significantly expanded the reach of the used car market in Malaysia, attracting a broader audience of tech-savvy consumers.
As the automotive industry continues to evolve, the used car market in Malaysia is poised for further growth and transformation, driven by evolving consumer needs and market dynamics.
Malaysia Used Car Industry Segmentation
A used car, a pre-owned vehicle, or a second-hand car is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchises and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales.
The Malaysian used car market is segmented by body type, vendor type, sales channel, and fuel type. By vehicle type, the market is segmented into hatchbacks, sedans, and sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs). By vendor type, the market is segmented into organized and unorganized. By fuel type, the market is segmented into petrol, diesel, and others. By sales channel, the market is segmented into online and offline. For each segment, market sizing and forecast are performed on the basis of value (USD).
Vendor Type | |
Organized | |
Unorganized |
Fuel Type | |
Petrol | |
Diesel | |
Others |
Body Type | |
Hatchback | |
Sedan | |
SUVs and MPVs |
Sales Channel | |
Online | |
Offline |
Malaysia Used Car Market Size Summary
The used car market in Malaysia has shown significant growth, particularly due to the impact of the COVID-19 pandemic on the automotive industry. The pandemic has led to an increase in used car sales, driven by factors such as reduced income, limited funds, and a growing preference for private vehicles as a means to maintain social distancing. The used car industry has thrived while the new car industry has struggled, with the market for used cars in Malaysia expected to continue its steady growth in the coming years. The used car market is particularly concentrated in urban areas such as Kuala Lumpur and Selangor, largely due to the high urban population and spending power in these regions. Government incentives and an increased preference for personal transportation during the pandemic have also contributed to the rising demand for used cars. However, challenges such as the unorganized used car sales channel and a lack of standardization may potentially hinder market growth. The used car market in Malaysia is highly fragmented, with a mix of startups and regional players. Major rental companies are establishing joint ventures and partnerships to launch new products in a bid to gain a competitive edge.
Explore MoreMalaysia Used Car Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Diverse Selection Among Car Models is Anticipated to Drive the Market Growth
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1.2 Market Restraints
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1.2.1 Counterfeit and Illegally Imported Vehicles are Restraining the Market Growth
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Vendor Type
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2.1.1 Organized
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2.1.2 Unorganized
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2.2 Fuel Type
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2.2.1 Petrol
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2.2.2 Diesel
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2.2.3 Others
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2.3 Body Type
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2.3.1 Hatchback
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2.3.2 Sedan
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2.3.3 SUVs and MPVs
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2.4 Sales Channel
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2.4.1 Online
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2.4.2 Offline
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Malaysia Used Car Market Size FAQs
How big is the Malaysia Used Car Market?
The Malaysia Used Car Market size is expected to reach USD 25.14 billion in 2024 and grow at a CAGR of 5.40% to reach USD 35.25 billion by 2029.
What is the current Malaysia Used Car Market size?
In 2024, the Malaysia Used Car Market size is expected to reach USD 25.14 billion.