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Main Feature Marketing Southeast Asia

Car buying, selling sees new significant changes on three SEA markets: report

Kuala Lumpur, Malaysia – New report from integrated car e-commerce platform Carsome showed a significant change in private car ownership and the aspect of buying and selling of cars among consumers in Malaysia, Indonesia and Thailand despite COVID-19.

Malaysian and Indonesia consumers have shown a greater interest in buying cars after the pandemic lockdowns, with up to 32% and 12% of consumers respectively showing interest compared to pre-lockdown behavior.

Meanwhile, all three markets saw an increase in consumers wanting to sell their cars, with Malaysia registering a 133% spike of consumers, followed by Indonesians (up 52%) and Thais (up 15%). 

As more and more consumers are selling their old cars due to getting more cash on hand, the usage of car selling platforms, including Carsome, also became popular 55% among Malaysian respondents, 34% among Indonesian respondents and 19% among Thai respondents. 

The increase of consumers selling their cars all have primary reasons in doing so due to financial constraints brought by unstable income and lack of budget. Other reasons include selling the much older car in favor of an existing usable car in their property, savings for future circumstances, and uncertainty of the economy after the pandemic woes.

On average, most Malaysian respondents (58%) plan to buy a car in a span of 1-6 months, while Indonesians (64%) and Thais (63%) plan to buy a car in a span of 7-12 months. Those that buy a car in a shorter time span reason out that a car is urgent to carry on daily duties. 

In terms of selling their cars, all the three markets shared an equal view of selling their cars in a span of 12 months, adding up the reason for replacing the car and optimism for the economy post-pandemic on reasons why to sell the car, aside from extra finances. In addition, all markets have shared the same perception that car dealers and car inspection centers are vital in selling cars to reduce contact of COVID-19 (Malaysians, 83%; Indonesians, 92%; Thai, 94%)

More than 50% of Malaysian and Indonesian respondents have lessened their car usage, while Thais have maintained the level of car usage pre-pandemic and post-pandemic. 

“The COVID-19 pandemic has changed the way Southeast Asians think of car ownership and mobility. The need to balance socially distancing and financial stability is leading many to a conclusion that the idea of car ownership is valuable to them during the pandemic. The car industry will continue to thrive as more Southeast Asians plan their car buying and selling within one to six months, creating a significant flow of car sales in the industry,” Carsome said in a statement.

Carsome conducted the survey in October 2020 among 1,000 Malaysian consumers, 1,005 Indonesian consumers and 1,055 Thai consumers. The survey was carried out through online panels sourced by research agencies.

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Marketing Featured Southeast Asia

MY car trading platform myTukar targets new opening of inspection centers

Kuala Lumpur, Malaysia – Local-based used car trading platform myTukar is preparing to open more physical inspection centers in Malaysia by the fourth quarter this year in the cities of Johor Bahru, Kuantan, Batu Pahat, and Seremban. 

The endeavor, supported by automotive marketplace CARRO, will follow the three recently opened branches in Malacca, Penang, and Ipoh last September, adding the 2,000 dealerships network in the country, which has seen 23,000 car transactions since the company’s establishment.

In addition, the targeted Johor Bahru opening would be myTukar’s second branch in the said city, and will serve as the company’s Southern Logistics hub.

Each myTukar branch will have the capacity to accommodate three cars at any given time, with a total of up to 300 cars per day that can be served. As cars are given inspection and evaluation within 30 minutes, customers can enjoy free WiFi, refreshments and a comfortable waiting lounge with each branch they visit.

Fong Hon Sum, CEO of myTukar stated the the company’s move towards opening more branches is a significant move since its establishment in 2018, and adds that with their ongoing mission to digitize trading of used cars, it aims to help car dealerships also move towards digitizing their services.

“With the opening of new branches in 2020, we are committed to expand our customer touchpoints for an unrivalled car selling experience. More branches are already on the horizon to cover more cities in Malaysia by 2021. This nationwide expansion strategy is aligned to and complements CARRO Group’s strategy to continuously expand and digitalise car trading for the South East Asia Region,” Fong stated.

This new strategy for the company is an addition to the company’s latest partnerships and collaborations this year. Partnerships include financial scheme with financial institution CapBay, digital platform SISMA Auto Glenmarie SELEKT Center, and Sime Darby Auto Selection for inventory management.

“These few key initiatives launched during the COVID-19 pandemic were key to drive business recovery and to fuel growth for the automotive industry in Malaysia. As the fastest growing online used car trading platform in Malaysia, myTukar remains committed to providing the best online experience, driving digital innovation and offering unwavering support to the used car ecosystem,” added Fong.