Indonesia Used Car Market Overview, 2029

In recent years, there has been a consistent increase in the used car market in Indonesia. Due to its large population, Indonesia has a sizable potential market for used automobiles. A burgeoning middle class and factors like cost and availability have led to an increase in demand for pre-owned cars. The buying and selling of previously owned automobiles is referred to as the used car market. For customers looking to upgrade from their present vehicle or find a cheap solution, this is an alternative. Due to the high price of new cars and the abundance of used car options, the used car market has grown in popularity in Indonesia. Customers can purchase a car at a reduced cost in this market, where a range of models and brands are offered. Due to increased digitization and firms' ability to provide immersive buying experiences remotely, it is expected that the used car industry in Indonesia would develop dramatically. The variety of financial institutions that provide financing for used automobiles and the rise in value-added services will both contribute to the area's used car market's growth. The higher borrowing rates may cause some prospective customers to shy away, which would hinder the market's growth. Another key factor driving the market's growth is the emergence of a large number of non-banking finance providers, which offer flexible installment plans and lower interest rates than banks. According to the research report "Indonesia Used Car Market Overview, 2029," published by Bonafide Research, the Indonesia Used car Market is expected to grow with more than 8% from 2024 to 2029. With rising demand, Indonesia has a lot of potential in the used automobile market. Purchasing secondhand cars is not solely driven by the inability to afford a new vehicle. Preference and depreciation momentum might occasionally work together to maintain the market share of used cars. When it comes to used automobile sales in the province, the most popular brands are Toyota, Daihatsu, and Honda. Some of the most popular SUV models on the used automobile market are the Toyota Fortuner, Daihatsu Terios, and Honda CR-V. The middle class in Indonesia is growing along with the country's economy, which expands the pool of possible buyers for old automobiles. The need for personal mobility is growing as more people move into cities, and used automobiles provide an accessible entry point. Gasoline-efficient used cars are a more alluring option than new cars due to rising gasoline prices. Improved and enlarged highways throughout Indonesia promote automobile ownership, including used vehicles. Future used car inventories will grow as more new vehicles hit the market. Budget-conscious customers are drawn to the informal market because it offers a greater selection of cars at lower rates, despite the risks involved. In order to guarantee market stability and buyer protection, formalization measures are essential.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric. Conventional cars often have lower maintenance costs and initial purchase costs. This makes them a more affordable choice for consumers on a tight budget, particularly in a developing nation like Indonesia. In general, conventional vehicles—especially sedans and hatchbacks use less gasoline than their larger equivalents. For Indonesian drivers, who are becoming more and more concerned about rising fuel prices, this is an important consideration. Compared to SUVs and MPVs, conventional cars frequently provide a better and more exciting driving experience due to their superior handling and maneuverability. Drivers that value having fun on the road and finding their way around city streets may find this appealing. Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others. Sport utility vehicles, or SUVs, have been more and more popular among Indonesians purchasing used cars in recent years. Consumers are always interested in browsing the SUV models that are available, and dealers are in a competitive position to offer new SUVs to meet the needs of this growing market. The SUV market among domestic consumers may be driven by the youth SUV craze. Elegant and sporty-looking SUVs are more likely to draw in upper-class buyers while yet offering a good level of comfort. Consumers with these concerns can receive even more fantastic SUV discounts. Even for people on a tight budget, there are affordable SUVs that yet give the impression of being a powerful, sophisticated vehicle. In this SUV class, the middle-class economy provides good value. Based on Fuel Type market is divided into Petrol, Diesel, Others. In general, petrol cars are far less expensive, both at the time of purchase and in terms of continuing maintenance. Because of this, they become far more affordable for a greater proportion of the Indonesian populace, whose income levels are still rising. In most of Indonesia, gasoline is more affordable than electricity and is more commonly accessible. Furthermore, there is currently a dearth of infrastructure for EV charging, with the majority of charging stations located in cities. For many drivers, especially those who live in rural areas or have limited access to charging stations, petrol automobiles are a more sensible choice due to their lack of accessibility.

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Based on Size market is divided into Mid-Size, Compact, SUVs. SUVs are the perfect vehicle for families, frequent travelers, and people who need extra space for gear or outdoor activities because of its large cargo capacity and interior space. Families in Indonesia, who cherish spending time together and discovering their stunning nation, may find this feature particularly appealing. SUVs can handle both everyday commutes and weekend trips with ease, moving with ease from city streets to harsher terrain. Many Indonesian purchasers who lead active lifestyles find them appealing because of their versatility in meeting a range of needs and activities. Based on Vendor Type market is divided into Organized, Unorganized. When comparing costs between traditional dealerships and internet platforms, the informal sector frequently provides far lower prices. Budget-conscious consumers, particularly those in lower income levels, are drawn to this affordability because they may not have access to financing or would rather avoid the extra expenses related to formal transactions. A larger network of independent vendors, independent mechanics, and neighborhood auto shops many of which are situated in towns and areas outside the traditional dealership boundaries function as the backbone of the informal market. Customers who seek a more individualized shopping experience or who live in rural places can purchase it more easily thanks to its broader reach. Based on By Distribution Channel market is divided into Offline, Online. In the Indonesian used automobile market, the offline sector is still dominant. Through direct communication with vendors, consumers can test drive cars, ask questions, and haggle over costs in person during the offline portion. This individualized approach can foster confidence and trust, which may appeal particularly to older or less tech-savvy consumers. Direct negotiations and haggling with vendors are deeply ingrained in Indonesian culture. This preference is met by the offline market, which gives consumers the opportunity to feel as though they've "won" a good deal a crucial component of the shopping experience for many.

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Considered in this report: • Geography: Indonesia • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report: • Indonesia Used car market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Vehicle Type: • Conventional • Hybrid • Electric By Body Type: • Hatchbacks • Sedan • SUV & MUV • Others By Fuel Type: • Petrol • Diesel • Others By Size: • Mid-Size • Compact • SUVs By Vendor Type: • Organised • Unorganised By Distribution Channel: • Offline • Online The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.