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The Philippines used car market is expected to register a CAGR of 7.4% during the forecast period (2022 - 2027).
With the COVID-19 outbreak, consumers were seen to be more concerned about personal health and hygiene. As a result, the preference for private transportation increased rather than the public transportation system. The shift in consumer behavior and preferences created new opportunities for the Philippines' used car market. Considering these opportunities several new players and OEMs are expected to enter the market. The pandemic demonstrated that, while the new car market becomes more vulnerable, the used car market becomes more resilient.
Used car for sale in the Philippines has evolved at an incredible rate over the last decade. Emerging countries, such as the Philippines, create a favorable ecosystem for used car ownership when compared to developed countries. The Philippines is one of the region's fastest-growing markets, with used car sales skyrocketing as a result of a rising population, improved opportunities, affordability, and a higher GDP growth rate.
Despite the fact that used passenger car sales are increasing, there is always a risk factor involved in purchasing a used car. The trust between buyers and sellers regarding the quality of used cars has not been completely established, which may have an impact on target market growth.
Scope of the Report
A used car is a resale vehicle that has been previously owned. Used cars are sold through a variety of outlets either offline or online.
The Philipines Used Car market is segmented by vendor type, fuel type, vehicle type, and sales channel.
The Philipines Used Car Market is segmented by Vendor Type as Organized and Unorganized. By Fuel Type, the market is segmented into Petrol, Diesel, and Others. By Vehicle Type, the market is segmented into Hatchback, Sedan, and Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPV). By Sales Channel, the market is segmented into Online and Offline. The report covers the market size and forecast in value (USD Million) for all the above segments.
|By Vehicle Type|
|Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPV)|
|By Fuel Type|
|By Sales Channel|
Key Market Trends
Organized Players are expected to witness higher growth rates during the forecast period
The unorganized players control the majority of the used car market in Philippines. Furthermore, the unorganized players do not provide any warranty on pre-owned vehicles. Some sellers commit fraud by re-painting and removing dents from accident vehicles in order to conceal their damage and obtain a falsely inflated value, which causes buyers to be wary of purchasing used cars. As a result, the higher rate of malpractices and unorganized dealers' larger market share pose a threat to the growth of the used car market.
However, used car sales through organized players have increased in recent years. When compared to unorganized market players, organized players provide better service and value to the customer. They offer buyers a diverse selection of used vehicles to choose from. Quality engineers have certified the vehicles available with these players. As a result, the risk of purchasing low-quality used cars has been significantly reduced. Organized players have contributed to the transparency of the used car market and the establishment of fair prices for both sellers and buyers. This has contributed to an increase in used passenger car sales in the Philippines. For instance
- Toyota has a strong customer base in the Philippines, and the Toyota Certified Used Vehicle (TCUV, or simply Toyota Certified) was created to reward customer loyalty by providing the best price for their vehicles when they sell or trade in. Toyota customers can also use TCUV to purchase used cars that have met Toyota's high-quality standards.
Based on such developments, the organized segment in the target market is expected to grow significantly during the forecast period.
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Online sales channel is expected to grow with significant rate over the forecast period
Advances in technology, such as the development of the internet, the use of e-commerce sites/applications to boost business demand, and the introduction of hybrid and electric vehicles, have altered buyer positions in the market. Consumers are becoming more knowledgeable about the vehicle, its residual value, third-party profit margin, and other factors thanks to online technologies. For instance,
- Carsome intends to enter the market in the near future and provide an online platform for used car sales in the Philippines.
Additionally, Machine learning and Artificial Intelligence are expected to play an important role in increasing revenues and decreasing costs of operation, which will positively impact the market growth during the forecast period.
The used car market in the Philippines is highly fragmented, with numerous startups and regional players. Although, in order to gain a competitive advantage, major rental companies are establishing joint ventures and partnerships to launch newer products.
- In May 2022, Carsome, a Malaysian used car marketplace, announced to enter the Philippines in the near future through joint ventures with local partners. The used-car online marketplace was recently valued at $1.7 billion after raising $290 million in a Series E funding round.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Restraints
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Vendor Type
5.2 By Vehicle Type
5.2.3 Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPV)
5.3 By Fuel Type
5.4 By Sales Channel
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.3 CarMax Enterprise Services, LLC
6.2.4 Carmix (LausAutoGroup )
6.2.5 Toyota Motor Philippines Corporation
6.2.10 Car Empire
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Philippines Used Car Market market is studied from 2018 - 2027.
What is the growth rate of Philippines Used Car Market?
The Philippines Used Car Market is growing at a CAGR of 7.4% over the next 5 years.
What is Philippines Used Car Market size in 2018?
The Philippines Used Car Market is valued at 70 Million USD in 2018.
What is Philippines Used Car Market size in 2027?
The Philippines Used Car Market is valued at 107 Million USD in 2027.
Who are the key players in Philippines Used Car Market?
Carmudi , Carousell, CarMax Enterprise Services, LLC, Philkotse.com, LausGroup Holdings, Inc. are the major companies operating in Philippines Used Car Market.