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Indonesia Used Car Market Size (2024 - 2029)

The Indonesian used car market is poised for growth, recovering from the impacts of the COVID-19 pandemic, which had less effect on this sector compared to new car sales. The shift in consumer behavior, with former public transport users now seeking personal vehicles, alongside increased digitization and enhanced remote purchasing experiences, is driving market expansion. The availability of value-added services and diverse financing options, particularly from Non-Banking Finance Companies offering competitive rates, further supports this growth. However, higher interest rates could pose a challenge to some potential buyers, potentially affecting the market's trajectory.

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Market Size of Indonesia Used Car Industry

Indonesia Used Car Market Summary
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

Indonesia Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

Indonesia Used Car Industry Segmentation

The Indonesian used car market refers to the segment of the automotive industry that involves the buying, selling, and trading of pre-owned vehicles in Indonesia. It encompasses a wide range of vehicles, including sedans, hatchbacks, SUVs, and vans, that have been previously owned and used by individuals or businesses.

Indonesia used car market is segmented by vehicle type, booking channel, financing providers, and province. By vehicle type, the market is segmented as the hatchback, sedan, sport utility vehicle (SUV), and multi-purpose vehicle (MPV). By booking channel, the market is segmented as online, OEM certified/authorized dealerships, and multi-brand dealerships. By financing providers, the market is segmented as OEMs, banks, and non-banking financial companies, and by province, the market is segmented as West Java, East Java, Central Java, North Sumatra, Banten, and Other Provinces.

The report offers market size and forecasts for all the above segments in value (USD).

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Indonesia Used Car Market Size Summary

The Indonesian used car market is poised for significant growth as it recovers from the disruptions caused by the COVID-19 pandemic. The market experienced a downturn during the pandemic due to reduced consumer spending and a shift in transportation preferences from public transport to personal vehicles. As normalcy returns, the market is expected to regain momentum, driven by increased digitization and enhanced online purchasing experiences. The availability of value-added services and diverse financing options, including those from non-banking finance companies, is further propelling market expansion. However, the impact of higher interest rates poses a potential challenge to some prospective buyers. The popularity of sport utility vehicles (SUVs) is on the rise, with consumers showing a growing interest in these models, which offer a blend of luxury, comfort, and value for money, particularly appealing to the middle-class segment.

The market landscape is characterized by a fragmented structure with numerous online platforms and company-operated dealerships competing for market share. Key players such as Carsome, OLX, and Mobil88 are actively engaging in strategic collaborations and acquisitions to strengthen their positions. The West Java region, with its dense population and significant car sales, plays a crucial role in the market's dynamics. Despite the pandemic-induced decline, used car prices have been on the rise due to supply and demand stagnation, with Japanese cars being particularly favored for their value. The market continues to see a shift in consumer preferences, with a notable transition from multi-purpose vehicles (MPVs) to SUVs, reflecting broader societal changes and evolving family structures.

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Indonesia Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Expanding Distribution Channels

      2. 1.1.2 Others

    2. 1.2 Market Restraints

      1. 1.2.1 Lack Of Trust And Transparency

      2. 1.2.2 Others

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Vehicle Type

      1. 2.1.1 Hatchback

      2. 2.1.2 Sedan

      3. 2.1.3 Sport Utility Vehicle (SUV)

      4. 2.1.4 Multi-purpose Vehicle (MPV)

    2. 2.2 Booking Channel

      1. 2.2.1 Online

      2. 2.2.2 OEM Certified/Authorized Dealerships

      3. 2.2.3 Multi Brand Dealerships

    3. 2.3 Financing Providers

      1. 2.3.1 OEMs

      2. 2.3.2 Banks

      3. 2.3.3 Non-Banking Financial Companies

    4. 2.4 Province

      1. 2.4.1 West Java

      2. 2.4.2 East Java

      3. 2.4.3 Central Java

      4. 2.4.4 North Sumatra

      5. 2.4.5 Banten

      6. 2.4.6 Other Provinces

Indonesia Used Car Market Size FAQs

The Indonesia Used Car Market is projected to register a CAGR of 5.79% during the forecast period (2024-2029)

Carro , Caroline, OLX , Carsome and iCar Asia are the major companies operating in the Indonesia Used Car Market.

Indonesia Used Car Market Report Snapshots

Indonesia Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)