South Korea Used Car Market- Business Opportunities, Size and Future Outlook to 2026 : Ken Research

Increasing Online Presence: The year 2020 saw a tremendous increase in the usage of the online space for buying and selling cars. Although online classified platforms such as Encar and Kb Cha Cha Cha were gaining traction for quite some time, the pandemic made it absolutely necessary for most of the dealers to have an online presence. More than 60% of the lead generation for used cars in the year 2021, happened via the online platforms. Several brands introduced the concept of virtual showrooms to promote minimum contact and social distancing between buyers and sellers.

Impact on Used Car Sales due to Covid-19: Multiple trends in the used cars industry were observed since the onset of Covid-19. Both new and used car sales were witnessing negative growth rates in 2018 and 2019. The pandemic led to an increase in the sales of cars - both new and used, which led to positive growth rates in used car sales. Sales of used cars picked up from March as people were avoiding public transport. Consequently, buying second hand car was the most economical and safe option.

Increasing Demand for Cars with Quality Assurance: Certified used cars have a special system of certification which is difficult to obtain by used car dealers. The system allows only a limited number of businesses and consumers to purchase certified cars. However, activation of quality assurance is encouraging the expansion and revitalization of the entire used car market. Dealers and Dealerships are focusing on offering reasonable assurance and warranty that their cars conform to the quality standards set by them.

High Customer to Customer Transactions Facilitating Growth of Online Classifieds: The used car segment has transformed into a platform economy with the assistance from online classifieds. Buyers and sellers of used cars can directly connect with each other on the classified platforms or through social networking sites, without the need to look for an intermediary. In overseas markets such as the United States and Germany, the proportion of direct sales of used cars between individuals is significantly lower than in South Korea. This provides an opportunity for Online Classifieds and Transaction Portals to capture the market.

Increased Facilities Offered by Online Platforms: Many online classifieds are enabling sellers to sell their cars directly to dealers through online bidding, reducing the lead time for sellers who want to sell urgently. Furthermore, companies are trying to increase their sourcing channels for the purchase of vehicles to sell them at a lesser cost. Value-Added Services such as financing options, leasing, renting and providing after sales is still in infancy stage but has seen an acceleration in adoption due to Covid-19.

Analysts at Ken Research in their latest publication "South Korea Used Car Market Outlook To 2026: Relaxed Government Regulations on Big Companies Entering Used Car Market to Facilitate Increase in the Used Cars Sales and Improve the Organized Market Share" observed that South Korea is in a maturity phase in the used car market in South East Asia and is gradually recovering from the economic crisis after the pandemic. The increasing E-Commerce penetration is giving a boost to this industry. Going forward, the industry is expected to demonstrate further growth in the short-medium term fueled by the growth of online used car platforms that provide convenience to both buyers and sellers. South Korea Used Car Market is expected to grow at a CAGR of 1% on the basis of sales volume over the forecast period 2021P - 2026F.

For more details @ https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/south-korea-used-car-market-outlook-to-2026/515067-100.html

Key Segments Covered

By Market Structure
Organized
Unorganized
By Organized Channel Source of Lead generation
Online
Dealership walk-ins
By Sales Channel
B2C
C2C
By Type of Car
Luxury Sedan
Sedan
Hatchback
SUV
MPV
Others (Sports car, Station wagon)
By Engine Size
2000 CC and Below
2000 CC - 3000 CC
3000 CC - 4000 CC
4000 CC and Above
By Brand
Hyundai
Kia
GM Korea
Renault Samsung
Ssangyong
Benz
BMW
Genesis
Audi
Volkswagen
Others (Includes both domestic and international brands)
By Region
Gyeonggi
Seoul
Gyeongnam
Gyeongbuk
Incheon
Busan
Chungnam
Dae-Gu
Jeonnam
Jeonbuk
Chungbuk
Gangwon
Gwangju
Daejeon
Ulsan
Jeju
Sejong
By Age
0-2 Years
2-4 Years
4-6 Years
6-8 Years
8-10 Years
More than 10 Years
By Mileage
Less than 20,000
20,000 - 40,000 Km
40,000 - 60,00 Km
60,000 - 80,000 Km
80,000 - 100,000 Km
Over 100,00 Km
By Fuel
Petrol
Diesel
Electric
Others (Petro-Electric, Diesel-Electric, etc.)
By Transmission Type
Auto
Manual
Others (Semi-Auto, CVT)
Request for Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTE1MDY3

Companies Covered

Authorized Dealers
Benz Hansung
BMW Deutsch Motor
BMW Bavarian Motors
KCC Auto.
C2B/C2B2C/B2C
K-Cars
Aj SellCar
Autohands
Hey Dealer
U-Car
Autoplus
Online Portals - Online Auto Classified Platforms
Encar
Kb Cha Cha Cha
Auction Players
Hyundai Glovis
Lotte Rental - Auction
Aj SellCar Auction
K Car Auction
Time Period Captured in the Report:-

Historical Period - 2015 - 2021P
Forecast Period - 2021P - 2026F
Key Topics Covered in the Report

Executive Summary
Research Methodology
South Korea Used Car Market Overview
South Korea Used Car Market Size, 2015-2021P
South Korea Used Car Market Segmentation, 2021P
Growth Drivers in South Korea Used Car Market
Issues and Challenges in South Korea Used Car Market
Government Regulations
Ecosystem and Value Chain of Used Car Industry in South Korea
Customers Purchase Decision Making Parameters
Cross Comparison between Major Authorized Dealers and Multi-brand Dealers
Snapshot on Online used car market
Future Market Size and Segmentations, 2021P - 2026F
Covid-19 Impact on the Industry & the way forward
Analysts' Recommendations
For more information on the research report, refer to below link:

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/south-korea-used-car-market-outlook-to-2026/515067-100.html

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