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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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Technology Featured Southeast Asia

Carro’s myTukar deploys AI on own car trading platform

Kuala Lumpur, Malaysia – Used car trading platform myTukar has announced the deployment of its artificial intelligence (AI) driven Car Defect Detection system and Car Plate Masking to its own platform.

The said service, developed via Amazon Web Services (AWS) and a combination of Amazon Rekognition and Amazon SageMaker, allows the platform to analyse images and videos using scalable and deep learning technology. In turn, this then automates and standardizes car inspection and uses AI to detect car defects such as dents, scratches and paint deterioration, while eliminating human error by up to 80%.

“The cutting edge myTukar AI was developed as a result of our passion to digitally transform the used car industry to ultimately benefit our customers and to digitize the industry. myTukar is the first tech company in the used car industry to set up an in-house data science team to provide both system efficacy and customization,” said Fong Hon Sum, CEO of myTukar.

He further added, “However, more than just digitalizing the used car market, the myTukar AI that we are implementing in our business operations today is but a glimpse of what is possible for the entire automotive industry in the near future. With a powerful self-diagnostic tool built on AWS such as myTukar AI, the entire customer experience within the automotive industry can be radically transformed.”

In addition, the AI algorithm also allows to produce car inspection report can be produced in seconds, consequently increasing the overall productivity and efficiency of myTukar’s operations within its 2,000 authorised dealerships.

“Most importantly, with the use of myTukar AI, we are benefiting our customers by strengthening the trust and increasing the transparency of the car inspection process,” Fong added.

The myTukar AI technology is set to roll out Carro Group’s Southeast Asia markets in Singapore, Thailand and Indonesia, a strategy to continuously expand and digitalize car trading for the Southeast Asia Region.