The global used vehicle market is on track to reach $2.5 trillion by 2027, according to a recent report by Ken Research. The industry is moderately fragmented with many dealers, both organized and unorganized, operating in the industry. Hybrid and electric vehicle sales are expected to grow in coming years, accounting for a significant share of used vehicle sales. The report highlights that expanding digital presence can be a game-changer for used vehicle selling companies as most consumers make purchasing decisions after searching online. Online platforms can synchronize online and showroom experiences and offer product information, sales support, and servicing online. Tik-Tok and Snapchat currently have minimal content on used vehicles, so these platforms offer potential growth opportunities for reaching new customers and increasing business opportunities.
Partnerships and collaborations with cab aggregators like Uber can be a growth strategy for the used vehicle industry. There have been over 30 successful collaborations in the form of joint ventures in the used vehicle industry. Dealerships can collaborate with mid-size corporates and companies to offer additional discounts to people aged between 25-60 years, who buy a vehicle using the company’s referral. This collaboration will enable dealerships to generate a higher number of leads through companies, leading to better conversion rates and boosting pre-owned vehicle sales.
The global used car industry is growing steadily, with the market expected to establish strong demand due to increased preference for personal vehicles over public transportation, particularly in Southeast Asian countries, which are experiencing an increase in internet and smartphone penetration.
Overall, the report shows significant potential for the used vehicle industry to maintain its momentum amidst market volatility. As the trend towards the electrification of vehicles continues, and customers increasingly turn to online platforms, there will be substantial opportunities for companies operating in this space to capitalize on growing trends.
