DUBLIN, June 22, 2022 /PRNewswire/ -- The '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' report has been added to ResearchAndMarkets.com's offering.
Market is expected to increase at a five year CAGR of 1.0% (by sales volume in units) from 2021P to 2026F
South Korea Used Car Market Outlook to 2026 provides a comprehensive analysis of the used car market trends and performance in South Korea.
The used car industry in South Korea is expected to demonstrate a decent growth in the future. It is expected that the share of the organized segment in the used cars space will increase over time as more brands are planning to enter the OEM pre-owned certified space.
Certain foreign established C2B players are too considering South Korea Used Car market a growing and profitable venture. Moreover, people in South Korea are realizing the advantages of buying a pre-owned cars through authorized outlets as there has been a shift in the general consumer preferences.
South Korea Used Car Market Overview and Size:
South Korea Used Car market increased at a CAGR of 0.8% (by sales volume in units) during 2015-2021P. The market has reached its maturity phase. A combination of restrictions on public transport and a movement towards private travel have accelerated the sale of used cars. Moreover, the availability of various financing facilities offered through banks and NBFIs, high internet penetration and increased government spending have been instrumental factors in facilitating the growth of the South Korean used car market.
Snapshot on Online Used Car Landscape
The number of online used car portals and marketplaces have risen significantly along with rising internet penetration in South Korea over the last few years. Major dealers such as K-Cars, Aj SellCar, Autoplus and others are using online platforms to increase their sales. Hence, there was an inevitable expansion in the lead generation of used cars via the online means.
Social networking sites including Facebook and Instagram play a key role in expanding the used cars market in South Korea. Emergence of online auto-portals and classified platforms such as Encar and Kb Cha Cha Cha have provided increased visibility and credibility to the customer-to-customer transactions in the unorganized segment.
South Korea had one of the fastest internet networks around the world. The internet infrastructure has been a high priority in numerous governmental regulations that led to its rapid and thorough expansion, contributing positively to the growth of the industry.
Competitive Landscape of South Korea Used Car Market
Various authorized dealerships, multi-brand outlets & independent (standalone as well as clustered dealers) operating in the industry have led to increased competition in the used car market. Most multi-brand dealers are providing value added services including easy financing options, handling the paperwork and warranty, to expand their market share and to compete with authorized dealers.
South Korea Used Car Market Segmentations
- By Market Structure (Organized, and Unorganized): The organized segment dominates the South Korean used car market covering about 90% of the overall market space. The removal of restrictions on big finished car makers' entry into the local used car market in 2019 and the formal entry of these players in 2022 will further contribute to increasing the organized used car market.
- By Organized Market Source of Lead generation (Online, Dealership walk-ins): The lead generation for used cars is South Korea has primarily taken place via the online platforms. The Authorized Dealers showcase the available used cars for sale mainly through their own websites. While, several multi-brand dealers prefer listing their inventory on the classified platforms as well. For buying and selling used cars in South Korea, social networking sites like Kakaotalk, Facebook, and Instagram are gaining traction.
- By Sales Channel (B2C and C2C):
- B2C sales in South Korea mainly occur through dealership walk-in and inventory listed on online classified platforms or through dealers' websites and Instagram pages, while C2C sales are mostly generated based on Online Classifieds & Offline References from friends & family. Social Media platforms like Kakaotalk and Facebook, are used extensively for C2C promotions and advertisements in order to reach a large set of potential customers quickly and free of cost.
- By Type of Car: SUVs and Luxury Sedans are quite popular in South Korea. SUVs, Sedans and Luxury Sedans account for more than 70% of the market share.
- By Brand: Hyundai is the market leader in South Korea accounting for the major share of used cars sold by volume. Korean made brands such as Hyundai, Kia Motors and Ssangyong Motor, are some of the most preferred car brands due to strong brand preference, reliability and longer life span of the pre-owned car. Amongst the continental cars, BMW and Mercedes Benz are the most preferred.
- By Region: Most of the used cars market is concentrated in the Gyenonggi and Seoul region in South Korea.
- By Age: Generally, any new car in South Korea is owned for 3 - 4 years before being sold to another owner. Therefore, the average age of used cars in the country also lies within the same bracket.
- By Kilometers Driven: Cars with a mileage of 60,000-80,000 kilometers dominated the used cars market in South Korea in the year 2021P.
- By Fuel: Petrol and diesel run cars dominate the used car market in South Korea. Electric and hybrid cars accounted for about 10% in 2021P.
Key Topics Covered in the Report
- 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
- GM Korea
- Renault Samsung
- Others (Includes both domestic and international brands)
- Benz Hansung
- BMW Deutsch Motor
- BMW Bavarian Motors
- KCC Auto
- Aj SellCar
- Hey Dealer
Online Portals - Online Auto Classified Platforms
- Kb Cha Cha Cha
- Hyundai Glovis
- Lotte Rental - Auction
- Aj SellCar Auction
- K Car Auction
Key Segments Covered
By Market Structure
By Organized Channel Source of Lead generation
- Dealership walk-ins
By Sales Channel
By Type of Car
- Luxury Sedan
- Others (Sports car, Station wagon)
By Engine Size
- 2000 CC and Below
- 2000 CC - 3000 CC
- 3000 CC - 4000 CC
- 4000 CC and Above
- 0-2 Years
- 2-4 Years
- 4-6 Years
- 6-8 Years
- 8-10 Years
- More than 10 Years
- 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
- Others (Petro-Electric, Diesel-Electric, etc.)
By Transmission Type
- Others (Semi-Auto, CVT)
Time Period Captured in the Report
- Historical Period - 2015-2021P
- Forecast Period - 2021P - 2026F
For more information about this report visit https://www.researchandmarkets.com/r/70cy2p
Research and Markets
Laura Wood, Senior Manager
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SOURCE Research and Markets
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