Thailand Used Car Market is projected to be worth USD 12.62 billion by 2033 and is anticipated to surge at a CAGR of 7.23%.
A used car, also referred to as a pre-owned car or second-hand car, is a vehicle that has been previously owned and driven by one or more individuals before being sold again. These cars can vary in terms of age, mileage, condition, and price. Used cars are available in a wide range of makes and models, offering buyers the opportunity to find a vehicle that suits their needs and preferences at a potentially lower cost compared to a brand-new car. They can be purchased from various sources, including used car dealerships, private sellers, auctions, and online platforms.
Thailand Used Car Market Driving Factors and Challenges
The Thailand used car market is influenced by several key factors like economic conditions, including GDP growth, income levels & employment rates. The relatively high price of new cars due to taxes and import duties drives many consumers to opt for more affordable used cars. The availability and variety of used car options in terms of brands, models, and price ranges and financing options specifically tailored for used cars provided by banks make them more accessible and affordable. Government policies related to taxes, import duties, vehicle registration fees, and emission regulations also impact the market, either stimulating or restricting it based on ownership costs and competitiveness.
Thailand's used car market faces challenges due to a flooded market with intense competition among sellers. Price depreciation is significant due to a large number of second-hand vehicles, making buyers reluctant to pay premiums, impacting seller profitability. Lack of transparency hampers buyer assessment of vehicle condition and history, hindering market growth. Financing for used cars is harder to secure with higher interest rates and stricter requirements, while insurance premiums may be higher for older vehicles. Counterfeit vehicles entering the market pose safety, quality, and ownership concerns. Limited warranty and inconsistent after-sales services discourage potential buyers from purchasing.
Impact of COVID-19 on Thailand Used Car Market
Many individuals and businesses faced financial difficulties in pandemic, leading to challenges in obtaining financing for used car purchases, which further impacted demand. Secondly, the economic impact of the pandemic forced some used car dealerships to close down or merge with larger entities, resulting in market consolidation and fewer players in the industry. However, the Thai government introduced incentives such as tax incentives and subsidies to stimulate the automotive industry and mitigate some of the negative impacts on the used car market. Additionally, there has been a shift in consumer preferences towards more affordable and fuel-efficient vehicles, influencing the types of used cars in demand and impacting market dynamics.
Thailand Used Car Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Asia Web Holding (Thailand) Co. Ltd, Carsome, CARS24 Group Thailand Co. Ltd, Honda Certified Used Car (Honda Automobile Thailand) Co. Ltd, iCarAsia.com, Mercedes Certified, Mitsubishi Diamond Used Car, Motors.co.th Limited (Motors Co Ltd), Nissan Intelligence, Pixy Asia Co. Ltd., SiamMotorworld, Toyota Sure Thailand, UsedcarBangkok.com, Volvo., Others.
Thailand Used Car Market Segmentation:
By Market Type: Based on the Market Type, Thailand Used Car Market is segmented as; Auction, B2C/OEM, C2C.
By Fuel Type: Based on the Fuel Type, Thailand Used Car Market is segmented as; Petrol, Diesel, Others.
By Vehicle Type: Based on the Vehicle Type, Thailand Used Car Market is segmented as; 1-Ton pickup, Hatchback, HPV/Mini Multi-Purpose Vehicles, Multi-Purpose Vehicles, Sedan, Sports Utility Vehicles.
By Booking Type: Based on the Booking Type, Thailand Used Car Market is segmented as; Offline, Online.
By Kilometres Driven Based on the Kilometres Driven, Thailand Used Car Market is segmented as; Less than 20,000 km, From 20,000 to 50,000 km, From 50,000 To 80,000 km, From 80,000 To 120,000 km, Above 120,000 km.
By Ownership Period: Based on the Ownership Period, Thailand Used Car Market is segmented as; Less than 1 year, 1-3 years, 3-5 years, 5-8 years, More than 8 years.
By Region: This research also includes data for Central Thailand, Eastern Thailand, Northeastern Thailand, Northern Thailand, Southern Thailand, Western Thailand.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.