Thailand News
Key Findings
Growth of Digital Platforms: Increasing internet and smart phone penetration in the country has resulted in large number of consumers preferring to buy and sell cars through online auto classifieds and social media. Auction Houses are also increasing their spending on online advertising and generating leads through these platforms. Data from Google Trends also indicates that the market has gained more attention. Searching for major second-hand car brands on the Internet increased in the past two years.
Unorganised dealers Dominate the Sales Volume in the Market: Independent dealers (Car Tents) dominate the market due to large presence across the country. These dealers are also increasing their online presence by listing their inventory on their own website/Facebook account or platforms resulting in market growth. The players in the unorganized sector give strong preference to less-aged cars and popular brands with good resale value. Consequently, buyers have limited range of vehicle options to choose from.
Sluggish Growth Rate Due to First Car Buyer Program: From 2011 to 2012, the Thai government implemented the First-Time Buyer Program to encourage automobile consumption, which led to a rapid growth in automobile production and sales. However, by the end of 2017 the market was flooded with second hand cars after the end of program. This caused a decrease of 20%-25% in the price of used car thereby affecting the industry revenue.
Declining Used Car Sales Demand due to Covid-19: The demand for used cars decreased during the corona virus pandemic. This was due to low supply and also due to closure of OEM dealerships and Local Tents during lockdown. This was further fuelled by decrease in purchasing power which led to postponing of new and used car purchases. Also, Thailand has recently recovered from a political and economical instability which has led to a decline in supply. Apart from sales issues, used car companies experienced cash flow difficulties due to the fact that most of the banks were not repossessing cars. The demand for used cars in the country remained low at the starting of 2020, however there was increase in demand in the second half of the year post ease in confinement. Slow recovery is expected in 2021. The manufacturers are expected to shift focus towards digital medium in order to drive sales and increase customer footfall.
Analysts at Ken Research in their latest publication “Thailand Used Car Market Outlook To 2025 – Growth of Online Used Car Platforms and Easy Availability of Credit Escalating Industry’s Growth”observed that Thailand is a growing used car market in South East Asia and is slowly recovering from the economic crisis after pandemic. The increasing credit availability in the country along exemption in taxes is driving the growth of the industry. Increasing focus on promotional and marketing activities, new product launches, partnerships & collaborations are expected to drive the industry in the future. The Thailand Used Car Market is expected to grow at a CAGR of 7.3% on the basis of GTV over the forecast period 2020-2025.
Key Segments Covered:-
• By Age of Vehicle
• By Age of Buyers
Companies Covered (OEM Dealerships)
Companies Covered (Online Portals)
Key Target Audience
Time Period Captured in the Report:-
Key Topics Covered in the Report:-
For More Information on the research report, refer to below link:-
Thailand Used Car Market
Related Reports:-
Indonesia Used Car Market Outlook To 2025 – By Market Structure (Organized & Unorganized), By Type Of Car (MPVs, Hatchbacks, SUVs & Others), By Brand (Toyota, Honda, Daihatsu, Suzuki & Others), By Vehicle Age, By Mileage, By Customer Age And By Region (DKI Jakarta, East Java, West & Central Java, North Sumatera & Others)
The Used Car industry in Indonesia has grown at a CAGR of 4.5% on the basis of gross transaction value over the period 2014-2019 and at a CAGR of 2.0% on the basis of sales volume. The overall economic slowdown, as well as the slowdown of the automotive industry due to a reduction in purchasing power of consumers, contributed to the decline in sales during 2016-2017. The entry of various financing companies in the used car industry, as well as the launch of OEM-certified used car programs, has been the major growth drivers of the industry. The boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.
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The used car industry in Saudi Arabia has grown at a CAGR of 0.8% on the basis of gross transaction value over the period 2014-2019 and declined at a CAGR of -2.4% on the basis of sales volume. The departure of expats from the country and the economic instability contributed to the decline in sales during 2016-2017. The addition of women drivers and the high levels of disposable income in the country are one of the major growth drivers of the industry. Boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms is contributing to the inclining used car sales in the country.
Philippines Auto Finance Market Outlook To 2024- Growing Prominence Of Captive Finance And Surge In Used Car Sales Supporting Disbursement For Auto Loans
The auto finance market has played an imperative role in the overall GDP (Constant Prices) contribution in the Philippine economy with a value contribution of more than 25% in terms of auto loan outstanding by the end of 2019 (Provisional). The Auto Finance Market in Philippines is fairly new and has not been able to penetrate the country. There is a lack of knowledge and awareness in the country which leads to the problem of people opting for cash purchases, in place of finance payments. Major operations are conducted by two types of entities namely, Banks & Subsidiaries and Non Bank Financial Institutes. The only captive finance working in the country is Toyota Financial Services Philippines and other than that there is a lack of Captive finance institutions.
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