GURUGRAM, India, Feb. 6, 2023 /PRNewswire/ — The UK used car market is consolidated with few major players (both organized and unorganized) operating in the industry. Majority of the used cars are sourced from organized sector with more than half the total share of used cars sold. Direct buying from consumers or individual sellers is another major source. Arnold Clark is the dominant player in Offline Used Car market in UK.
- The share of organized sector is more than unorganized sector in UK used car market due to higher preference and trust on organized players in the market.
- People in UK prefer cars that are around five years old as they are less likely to need expensive replacements at this age.
- With the rise in preference for online retailing, the online segment is expected to witness significant growth, however, a large number of customers prefer offline stores while purchasing used vehicles to ensure and check the vehicle physically. Therefore, the offline segment of the market is anticipated to dominate the market during the forecast period.
- South East England is the dominating region in UK for used cars sales as of 2021 followed by North West and the West Midlands.
Increase in demand for Used Cars: There is a significant growth in the used car sales during forecast period majorly due to expected increase in hybrid and electric vehicle car sales in coming years which is anticipated to grow at ~15% CAGR by 2026F. The conventional used cars have also maintained its dominance however, its overall growth during 2021- 2026F is slower as compared to electric vehicles. As a result, several OEMs are focusing on developing EVs rather than conventional vehicle due to surging demand for more affordable vehicle in the country.
Focus on Expanding Digital Presence: Most consumers these days make used car buying decision after searching online which necessitates synchronizing online and showroom experiences and sharing product information, offering sales support & servicing online. Online platforms can introduce an additional service wherein consumers can go through all the used car auctions taking place around them or that are scheduled for the future. At present, there is not much used car content on Tik-Tok and Snapchat. These platforms are suitable for targeting new customers and will help to increase business opportunities for used car operators.
Partnerships and Collaborations for future growth: Brand authorized/direct dealership agents as well as large multi-brand outlets can partner with cab aggregators operating in the country such as Uber, Pink Taxi, ABC Taxi in and more. Dealerships can collaborate with mid-size corporates & companies to offer additional discounts to people within that age bracket if they buy a car using the company’s referral. This collaboration will enable the dealership in generating higher number of leads through the companies, which can ultimately lead to better conversion rates and boost pre-owned car sales.
Analysts at Ken Research in their latest publication “UK Used Car Market Outlook to 2026F – driven by declining production of New Vehicles in UK & affordability of used Cars due to increasing cost of living in the Country“ by Ken Research observed that used car market is an emerging automotive market in UK at a rebounding stage from the economic crisis after pandemic. The rising awareness and demand for personal vehicle over public vehicle, increase in disposable income along with rising online platforms for used cars is expected to contribute to the market growth over the forecast period. The market is expected to grow at 11.4% CAGR during 2021-2026F owing to increase in prices of new cars, rise in demand and total sales of used cars.
Key Segments Covered in the Report:
By Type Vendor
- Organized
- Unorganized
By Type Of Vehicle
- Conventional
- Electric
- Hybrid
By Type Of Fuel
- Petrol
- Diesel
- Others
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By Sales Channel
- Online
- Offline
By Type Of Car
- SUV
- Crossover
- Sedan
- Hatchbacks
- Pickup Trucks
- Luxury
Key Target Audience
- Banks and its Subsidiaries
- NBFCs
- Captive Finance Companies
- Government and Institutions
- Automobile Companies
- Car Dealers
- Government and Institutions
- Existing Car Finance Companies
- OEM Dealerships
- New Market Entrants
- Investors
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Time Period Captured in the Report:
- Historical Period: 2017-2021
- Base Period: 2021
- Forecast Period: 2022-2026F
Key OEM Covered:
Major OEM and Multi-Brand Outlets
- Arnold Clark Automobiles Limited
- Pendragon PLC
- Sytner Group Limited
- Lookers plc
- Vertu Motors PLC
- Inchcape PLC
- Available Cars Ltd
- JCT 600 Ltd
- Group 1 Automotive
Several Independent Dealers, Auction Houses
Online Auto Classified Portals & Marketplaces
- Auto Trader Group PLC
- Motorpoint Group PLC
- Cazoo Ltd
- Cinch Cars Limited
- CarGurus UK Limited
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France used car market was valued at USD ~ Billion in 2021, and it is expected to reach a value of USD ~ billion by 2027, registering a CAGR of ~% during the forecast period (2022 – 2027). Amid the COVID-19 pandemic-associated lockdown, the demand for used cars witnessed a halt in sales for the first half of the year 2020. However, since the second half of the year 2020, the demand for used vehicles started to pick the pace and continued until 2021. The prolonged waiting period for new vehicles encouraging a large number of customers across the country to opt for used vehicles, which is likely to drive the market growth during the forecast period.
According to Ken Research estimates, due to the impact of COVID-19, there has been a substantial decrease in the denominator (new car sales) while the numerator, i.e. The pre-owned car market, has been relatively stable. The Turkey used car market is expected to grow at a 11.8% CAGR during 2021-2026F, driven by increase in prices of new cars and government initiatives. The Turkish automotive industry had a foreign trade surplus of approximately $9.5 billion in 2021. In past 2 years, the average price of gasoline powered cars has more than doubled and gone up by 120% for diesel vehicles, which are more popular in Turkey. The Turkish automotive industry had a foreign trade surplus of approximately $9.5 billion in 2021.
Efforts to transform the industry into a more organized one by players is expected to positively impact the sales. Online used car websites are adding certified dealers to their current model, which gives brand name to dealers & trust for buyers. Additionally, use of advanced technologies such as AI to valuate car online by looking at the pictures only, 360-degree view of the interiors of the car, etc., to enhance digital experience of consumers and larger number of independent & multi-brand dealers are expected to shift towards online platforms increasing their digital presence and more are expected to drive the USA Used Car market in the near future.
The used car industry is expected to recover from the Covid-19 pandemic and witness growth by 2026. The increasing demand from smaller cities such as Jazan, Arar among others is expected to drive the growth of the industry. The growing traction towards online platforms is expected to compel dealerships to expand their presence online. Online platforms are expected to leverage the latest technologies such as artificial intelligence & virtual reality to enhance the user browsing experience. The overall used to new car sales ratio in the country is also expected to improve in the future.
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SOURCE Ken Research