After a record performance in 2021, the market for used cars in Thailand is set to have a stellar year this year too as online car dealers like Cars24 of India and Carsome of Malaysia have entered the market in order to fill the gap between diminishing new cars and the demand for used cars.
Carsome announced its partnership with Retail Business and PTT Oil so that the Malaysian company could expand its network of used cars as well as increase online sales of the same. The president of the Association of Used Cars, PInyo Tanawatcharaporn referred to the market as a blue ocean one, denoting that this industry has little to no competition. He expects the second-hand car market to expand by 10-15% in 2022.
As an example, Cars24 of India launched its entry in Southeast Asia after its business rivals Carro and Carsome did the same. These startups expect to generate car sales online whereas Delloite has predicted that 21% of Thai consumers will prefer partial or full virtual transactions to purchase a new (used ) vehicle.
Digital penetration in Southeast Asia is high and all the above startups are banking on shifting their consumer base to online as far as possible. With this comes the consumer’s worry that the quality of used cars online will not be high. However, to render these fears benign, the Used Car Association has partnered with Japanese vehicle inspection expert Goo to check the quality of used cars before they are put up for sale on online platforms.