Philippines Used Car Market Analysis and Forecast (2019-2028)

Executive Summary

Philippines' used car market has shown consistent growth, boasting a Compound Annual Growth Rate (CAGR) of more than 12% from 2019 to 2023. Moreover, used car sales soared, surpassing 1.2 million units with a sales volume rapid growth rate of more than 7%. Particularly noteworthy is the emergence of tier 2 cities as the primary consumers of the used car market followed by tier 1 cities like Metro Manila, Quezon City, and Cebu city.

The Philippines' used car industry is currently witnessing fierce competition among key players, all trying to secure a larger share in this rapidly evolving sector. Leading companies such as Automart.PH, Carmudi Philippines, Zigwheels Philippines, Toyota Motor Philippines Corporation (T sure), and AutoDeal.com.ph are leading this competition by implementing innovative strategies and expanding their footprint to meet the escalating demand for high-quality pre-owned vehicles. As the market experiences significant growth, online platforms gain traction with companies striving for market dominance and seeking to differentiate themselves through superior service quality, competitive pricing, and technological advancements.

Moreover, industry is witnessing rise in mergers, acquisitions, and strategic investments among major players and offering growth opportunities for foreign players amid existence of large number of unorganized players. These alliances aim to capitalize on each other's strengths, broaden market capabilities, and offer comprehensive end-to-end solutions to consumers. With customers increasingly demanding faster delivery and real-time tracking, used car service providers are under pressure to provide more flexible and consumer-centric solutions. Companies capable of adapting to these evolving demands stand to gain a competitive advantage.

Growing Popularity of Organized Market Structure in Philippines Used Car Market

In Philippines the sales facilitated by organized players are on the rise. This trend is attributed to their ability to provide enhanced services and value to customers, offering a diverse range of certified pre-owned vehicles. The certification process guarantees that these cars adhere to stringent quality standards, mitigating the potential risk associated with purchasing used vehicles which is further enhanced by the growing organized players in the country. Additionally, these organized players have played a pivotal role in improving market transparency and ensuring fair pricing practices, thus contributing to their increasing popularity among consumers.

Philippines Used Car Market Developments

• The digital transformation in the Philippines' used car market has not only streamlined operations but has also opened up new avenues for buyers and sellers alike, paving the way for a more efficient and trustworthy marketplace. This shift reflects a broader trend towards embracing technology to overcome traditional industry challenges and enhance the overall consumer experience. Despite this, only a small fraction of households, comprising just 6% nationwide, own a car as of February 2023. Philippines also maintains one of the lowest car ownership rates per capita globally thus offering greeter growth opportunity for the market.
• A notable market trend in the Philippines is the concentration of organized used car dealerships in key urban centers like Metro Manila, Quezon City, and Cebu. Together, these cities host a significant portion of such dealerships, comprising more than 50% of all outlets in Tier 1 cities.
• Japanese and South Korean automotive brands currently hold a dominant position in the market, with Chinese brands emerging as noteworthy contenders in recent years. Models like the Toyota Vios, Honda City, and Mitsubishi Mirage are particularly esteemed for their reliability, fuel efficiency, and robust resale value and thus are well appreciated in the Philippines used car market.
• A notable trend in the Philippines' used car market is its emergence as one of the premier destinations for such transactions in Southeast Asia. This phenomenon is primarily driven by the country's young and rapidly growing population and the rise in demand for affordable transportation options, spurring interest in the used car segment. Additionally, as economic opportunities expand and disposable incomes rise, more Filipinos are able to afford vehicles, further fueling the demand for pre-owned cars.

Competition in the Philippines Used Car Industry

The report encompasses a variety of companies operating within the used car market, featuring well-known names including Automart.PH, Carmudi Philippines, Zigwheels Philippines, Toyota Motor Philippines Corporation (T sure), and AutoDeal.com.ph. Additionally, it includes several online platforms such as Carmudi Philippines, Autodeal, Tsikot, Philmotors, Philkotse, Car Finder Philippines, Motoring and Tech, ManilaCarList, CarsInPhilippines, OLX Philippines, and Auto Trade, catering to different aspects of the market. Furthermore, the financial sector is also covered, incorporating major players such as South Asialink Finance Corp, Security Bank, EastWest Bank, Toyota Financial Services Philippines Corporation (TFSPH), Maybank, RCBC, Metrobank, BPI, and BDO Unibank. These companies represent diverse segments of the industry, ranging from online platforms like Autodeal Philippines and Carmudi to established dealerships like Toyota Motor Philippines Corporation. Their inclusion in the report offers a comprehensive overview of the industry's key players and their influence on the market.

Future Growth Outlook of Philippines Used Car Market

Philippines' low car ownership rates, developing infrastructure, and the growth of the organized market is expected to contribute to the promising outlook for the used car industry. With relatively low car ownership rates, there exists a significant pool of potential customers who may turn to the used car market for affordable transportation options. Moreover, the ongoing development of infrastructure, such as roads and highways, facilitates easier access to various regions, potentially increasing demand for used cars across the country.

The expansion of organized players in the market enhances consumer trust and confidence by offering reliable services, certified vehicles, and transparent transactions. With an anticipated increase in the population, alongside rising disposable incomes and a growing working women population, it is expected that used car revenue will reach significant heights by 2028 with a growth rate of 8.10%. The purpose of this analysis is to provide stakeholders with valuable insights into the potential opportunities and challenges present within the market.

Scope of Philippines Used Car Market Research Report

The research report titled "Philippines Used Car Market Analysis and Forecast (2019-2030) - by Brand, Car Type, Body Type, Fuel Type, Cities, and Age Group" by Makreo Research aims to deliver a comprehensive analysis of the performance and future growth potential of the Philippines' used car market. Its objective is to evaluate the market's historical performance and current status while identifying key drivers that will influence its future growth trajectory. The report offers detailed insights into various market aspects, including car types, fuel types, car brands, different cities, channel types, and dealer types. Ultimately, the research report seeks to provide stakeholders with an in-depth analysis of the Philippines' used car market, enabling them to comprehend its current state, anticipate future growth prospects, and identify potential investment and strategic decision-making opportunities

Period of Study

• 2018 - 2023 : Past and Present Scenario
• 2023 : Base Year
• 2024 - 2028 : Future Outlook of the Market

Scope of Philippines Used Car Market

The research report titled “Philippines Used Car Market Analysis and Forecast (2019-2028) - by Brand, Car Type, Body Type, Fuel Type, Cities and Age Group" by Makreo Research aims to offer a comprehensive analysis of the performance and future growth potential of the Philippines used car market. It intends to assess the market's historical performance and current status, while also identifying key drivers that will impact its future growth trajectory. The report provides detailed insights into various market aspects, including car types, fuel types, car brands, different cities, channel types, and dealer types.

Overall, the research report seeks to provide stakeholders with a thorough analysis of the Philippines used car market, helping them understand its current state, future growth prospects, and potential investment and strategic decision-making opportunities.

Key Areas Discussed in the Report

By Structure

• Organized
• Unorganized

By Channel

• Online
• Offline

By Brand

• Toyota
• Daihatsu
• Honda

By Car Model

• Toyota Avanza
• Daihatsu Sigra
• Mitsubishi Xpander
• Honda Mobilio

By Body Type

• Sedan
• SUV
• Hatchbacks
• MPV
• Commercial
• LCGC

By Fuel Type

• Petrol
• Diesel
• Hybrid
• EV

By Cities

• Manila
• Sumatra
• Surabaya
• Medan

Major Players Discussed in the Report

• Automart.PH
• Carmudi Philippines
• Zigwheels Philippines
• Toyota Motor Philippines Corporation (T sure)
• AutoDeal.com.ph

Major Online Used Car Portals

• Carmudi Philippines
• Autodeal
• Tsikot
• Philmotors
• Philkotse
• Car Finder Philippines
• Motoring and Tech
• ManilaCarList
• CarsInPhilippines
• OLX Philippines
• Auto Trade

Major Used Car Financing Companies

• South Asialink Finance Corp
• Security Bank
• EastWest Bank
• Toyota Financial Services Philippines Corporation (TFSPH)
• Maybank
• RCBC
• Metrobank
• BPI
• BDO Unibank

Key Questions Answered

1. What has been the historical performance of the used car market in the Philippines, and what does the current situation look like?

2. How does the Philippines rank in the global automotive trade?

3. What challenges are encountered by participants in the Philippines' used car market?

4. In which city is the demand for used cars the highest?

5. What types of used cars are seeing a rise in demand within the Philippines?

6. Which city is anticipated to show significant growth potential in the coming years in the Philippines?

7. What type of fuel predominates in the Philippines' used car market?

8. What are the growth projections for the electric vehicle (EV) sector in the Philippines?

9. Who are the major players in the Philippines' used car market, and what does the investment landscape look like?

10. What opportunities are projected to propel revenue growth in the Philippines' used car market moving forward? Show more