Report Overview

Malaysia Used Cars Market – Industry Trends & Forecast Report, 2030

The Malaysia Used Cars Market size by value was estimated at USD 1.89 billion in 2023. During the forecast period between 2024 and 2030, the Malaysia Used Cars Market size is projected to grow at a CAGR of 8.92% reaching a value of USD 3.55 billion by 2030. Prominent drivers of the market include the increasing diversity of the automotive sector in Malaysia and rising demand for cost-effective transportation options. With a growing middle class and the trend toward urbanization, there is a rising need for reliable and affordable vehicles, which boosts the demand for used cars. The market offers a diverse range of vehicles, from compact hatchbacks to large SUVs, catering to various budget constraints and consumer preferences. As new car prices continue to increase, especially for models with the latest technology, pre-owned vehicles become a more attractive choice for many consumers due to their lower prices and reduced depreciation rates. The convenience of online platforms is also driving the growing popularity of used cars, as these digital channels expand the market's reach and appeal to tech-savvy buyers. As the automotive industry evolves, the used car market in Malaysia is expected to continue growing, driven by shifting consumer needs and the rising adoption of digital platforms.

By volume, the Malaysia Used Cars Market size was estimated at 3.1 million units in 2023. During the forecast period between 2024 and 2030, the Malaysia Used Cars Market size is projected to grow at a CAGR of 6.22% reaching the volume of 4.2 million units by 2030. The market growth is driven by a strong preference for organized sales and the increasing use of online platforms for buying and selling used cars. Among the regions in Malaysia, Kuala Lumpur and Selangor are expected to have the highest demand for used cars, as they account for around 25% of vehicle registrations due to their high population density.

Used Cars Market – Overview

The used cars market refers to a segment of the automotive industry involved in the buying and selling of pre-owned passenger cars. This market encompasses all transactions of cars that have been previously owned or driven, including those sold by private individuals, dealerships, or online platforms. It includes a wide range of vehicles, from economy cars to luxury models, and involves various channels such as traditional dealerships, independent sellers, online marketplaces, and auctions. The used cars market plays a significant role in providing affordable transportation options to consumers and is influenced by factors like economic conditions, consumer preferences, technological advancements, and regulatory policies.

Malaysia Used Cars Market

Growth Drivers

Rising Cost of New Cars

The Malaysia Used Cars Market is experiencing a surge in demand as the rising cost of new cars drives buyers toward more affordable alternatives. Inflation, higher raw material costs, and increased taxes are among the factors pushing up the prices of new vehicles, leading consumers to seek better value in the used car market, which has resulted in notable growth in the secondhand car market. This trend is beneficial for both individual sellers and dealerships, creating a robust market for pre-owned vehicles. The increase in demand also has a positive impact on auto financing and insurance sectors, with buyers exploring cost-effective ways to own a car. Recent government tariff announcements are driving up new car prices in Malaysia by 2–8.6%, with Proton's prices expected to rise by up to 5%, as reported by the New Straits Times. For some Proton models, this translates to an increase of MYR 2,000–5,000 (USD 526–789) per unit. Edaran Tan Chong Motor Sdn Bhd, which distributes Nissan, also plans to raise prices by as much as 8.6%. These rising costs are prompting more consumers to consider used cars, where a broader range of affordable options is available, supporting the continued growth of Malaysia Used Cars Market.

Challenges

Stigma around Used Cars

Despite the affordability and diversity offered by the Malaysian Used Cars Market, a lingering stigma around used cars acts as a barrier to its growth. Many consumers associate pre-owned vehicles with hidden issues, such as mechanical problems, high mileage, or uncertain accident histories. This perception can deter potential buyers, leading them to opt for new cars despite the higher cost. The lack of trust in the quality and reliability of used cars, along with fears of inadequate after-sales support, contributes to this stigma, restricting the market's growth. Addressing these concerns through certification programs and comprehensive inspections could help reduce the stigma and boost consumer confidence in purchasing used cars.

Impact of Escalating Geopolitical Tensions on Malaysia Used Cars Market

The Malaysia Used Cars Market is impacted by geopolitical tensions in several ways including disrupting supply chains, affecting trade relations, and influencing consumer sentiment. When geopolitical conflicts arise, they can lead to supply shortages of new vehicles, prompting more consumers to turn to used cars, thereby increasing demand. However, these tensions can also result in higher costs for imported parts and vehicles, potentially raising prices in the used car market. Additionally, geopolitical instability can erode consumer confidence, leading to reduced spending on non-essential items, including cars. Overall, the interplay of these factors creates an uncertain environment that can both boost and constrain the used car market in Malaysia.

Malaysia Used Cars Market

Segmental Coverage

Malaysia Used Cars Market – By Vehicle Type

On the basis of vehicle type, the Malaysia Used Cars Market is divided into Hatchbacks, Sedans, Sports Utility Vehicles (SUVs), and Multi-Purpose Vehicles (MPVs) segments. The sedans and hatchbacks segments hold the highest share in the Malaysia Used Cars Market by vehicle type. It is primarily due to their affordability, versatility, and fuel efficiency. These vehicle types are generally more budget-friendly, making them popular among cost-conscious consumers. Their compact size and practicality suit Malaysia's urban and suburban environments, where parking and maneuverability are key considerations. Additionally, sedans and hatchbacks typically have lower maintenance and insurance costs, adding to their appeal. The widespread availability of these models in the used car market provides consumers with a wide range of options to choose from, further solidifying their strong market share in Malaysia.

Malaysia Used Cars Market – By Fuel Type

Based on fuel type, the Malaysia Used Cars Market is split into Gasoline and Diesel segments. The diesel segment holds a higher share in the Malaysia Used Cars Market by fuel type. It is due to their fuel efficiency and durability. These vehicles often provide better mileage, making them appealing for long-distance travel and commercial use. Diesel cars also typically have a longer lifespan due to the robustness of their engines, offering added value to used car buyers. Additionally, the lower cost of diesel fuel compared to gasoline in Malaysia contributes to the preference for diesel vehicles, further driving demand in the used car market.

Malaysia Used Cars Market – By Booking Type

On the basis of booking type, the Malaysia Used Cars Market is split into Online and Offline segments. The online segment holds a higher share in the Malaysia Used Cars Market by booking type. It is primarily due to its convenience, accessibility, and efficiency. With online platforms, customers can browse a wide variety of used vehicles, compare prices, read reviews, and even access detailed information about a car's history—all from the comfort of their own home. This ease-of-use appeals to modern consumers, who prefer to do their research and make bookings without visiting a physical location. Additionally, online platforms often offer streamlined processes for scheduling test drives, arranging financing, and completing transactions, further simplifying the purchasing journey. This blend of convenience and comprehensive information makes the online segment a popular choice for booking used cars, leading to its larger market share.

Malaysia Used Cars Market – By Vendor Type

By vendor type, the Malaysia Used Cars Market is bifurcated into Organized and Unorganized segments. The organized segment holds a higher share in the Malaysia Used Cars Market by vendor type. Organized vendors, such as established dealerships and Original Equipment Manufacturer (OEM) captive dealers, offer a more reliable and professional purchasing experience, attracting consumers seeking quality and assurance. They often provide additional services like warranties, vehicle certification, and financing options, enhancing buyer confidence. Also, organized vendors have broader reach and marketing capabilities, allowing them to attract a larger customer base. This structure creates a safer and more transparent market for used cars, contributing to the higher share of the organized segment.

Competitive Landscape

Major players operating in Malaysia Used Cars Market include CARSOME Sdn Bhd, Mudah.my Sdn Bhd, myTukar Sdn Bhd, Carlist.my, MT Digital Sdn Bhd, Sime Darby Auto Selection, Caricarz Sdn Bhd, UMW Toyota Motor Sdn Bhd, Mercedes-Benz Malaysia Sdn Bhd, and BMW Malaysia Sdn Bhd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2023 - Proton, Malaysia's national carmaker, formed strategic partnerships with three e-bidding companies—myTukar, MUV, and Carsome—to streamline the car trade-in process for customers. The collaborations aim to simplify the disposal of trade-in cars, providing a more efficient and user-friendly experience for Proton's customers.

Scope of the Report

By Vehicle Type

• Hatchbacks

• Sedans

• Sports Utility Vehicles (SUVs)

• Multi-Purpose Vehicles (MPVs)

By Fuel Type

• Gasoline

• Diesel

By Booking Type

• Online

• Offline

By Vendor Type

• Organized

• Unorganized

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Malaysia Used Cars Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising cost of new cars
         2. Shifting consumer preferences
         3. Improved quality and reliability of used cars
         4. Growth of online used car platforms
      2. Restraints
         1. Lack of transparency
         2. Stigma around used cars
      3. Opportunities
         1. Increasing demand for personal mobility
         2. Economic factors
      4. Challenges
         1. Economic downturns
         2. Rising prices of used cars
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Malaysia Used Cars Market: Marketing Strategies
5. Malaysia Used Cars Market: Pricing Analysis
6. Malaysia Used Cars Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
      2. By Volume (Million Units)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Hatchbacks
         2. Sedans
         3. Sports Utility Vehicles (SUVs)
         4. Multi-Purpose Vehicles (MPVs)
         5. Others
      2. By Fuel Type
         1. Gasoline
         2. Diesel
         3. Others
      3. By Booking Type
         1. Online
         2. Offline
      4. By Vendor Type
         1. Organized
         2. Unorganized
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Malaysia Used Cars Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Malaysia Used Cars Market: Import & Export
9. Impact of Escalating Geopolitical Tensions on Malaysia Used Cars Market
10. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)

10.1.    CARSOME Sdn Bhd
10.2.    Mudah.my Sdn Bhd
10.3.    myTukar Sdn Bhd
10.4.    Carlist.my
10.5.    MT Digital Sdn Bhd
10.6.    Sime Darby Auto Selection
10.7.    Caricarz Sdn Bhd
10.8.    UMW Toyota Motor Sdn Bhd
10.9.    Mercedes-Benz Malaysia Sdn Bhd
10.10.    BMW Malaysia Sdn Bhd
10.11.    Other Prominent Players
 

10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Malaysia Used Cars  Segmentation     

Figure 2       Malaysia Used Cars Market Value Chain Analysis    

Figure 3       Company Market Share Analysis, 2023

Figure 4       Malaysia Used Cars Market Size, By Value (USD Billion), 2019–2030   

Figure 5       Malaysia Used Cars Market Share, By Vehicle Type, By Value, 2019–2030     

Figure 6       Malaysia Used Cars Market Share, By Fuel Type, By Value, 2019–2030

Figure 7       Malaysia Used Cars Market Share, By Booking Type, By Value, 2019–2030    

Figure 8       Malaysia Used Cars Market Share, By Vendor Type, By Value, 2019–2030     

List of Tables

Table 1 Malaysia Used Cars Market Size, By Value (USD Billion), 2019–2030

Table 2 Malaysia Used Cars Market Size, By Vehicle Type, By Value, 2019–2030

Table 3 Malaysia Used Cars Market Size, By Fuel Type, By Value, 2019–2030

Table 4 Malaysia Used Cars Market Size, By Booking Type, By Value, 2019–2030

Table 5 Malaysia Used Cars Market Size, By Vendor Type, By Value, 2019–2030

Table 6 CARSOME Sdn Bhd Company Overview

Table 7 CARSOME Sdn Bhd Financial Overview

Table 8 Mudah.my Sdn Bhd Company Overview

Table 9 Mudah.my Sdn Bhd Financial Overview

Table 10      myTukar Sdn Bhd Company Overview

Table 11      myTukar Sdn Bhd Financial Overview

Table 12      Carlist.my Company Overview

Table 13      Carlist.my Financial Overview

Table 14      MT Digital Sdn Bhd Company Overview

Table 15      MT Digital Sdn Bhd Financial Overview

Table 16      Sime Darby Auto Selection Company Overview

Table 17      Sime Darby Auto Selection Financial Overview

Table 18      Caricarz Sdn Bhd Company Overview

Table 19      Caricarz Sdn Bhd Financial Overview

Table 20      UMW Toyota Motor Sdn Bhd Company Overview

Table 21      UMW Toyota Motor Sdn Bhd Financial Overview

Table 22      BMW Malaysia Sdn Bhd Company Overview

Table 23      BMW Malaysia Sdn Bhd Financial Overview