Growth of Used Car Industry in Indonesia: Ken Research

Growth of Online Platforms: The last decade has witnessed the entry of various online auto classified platforms in the country such as Mobil123, OLX Autos, Carsome, Carro and more. The internet penetration in Indonesia stood at ~73% in 2019, highlighting the growing presence of consumers online. Majority of the leads for offline dealerships were also observed to be generated online. The traction towards online platforms has led to brands & local dealerships partnering with these platforms to list their used car inventory online.

Concentration of Sales in Jakarta: Majority of the used car transactions were concentrated in Jakarta, the region being home to a large urban population. The province also had the highest passenger car ownership in the country with 405 cars for every 1,000 individuals, way above the national average of 69 cars per 1,000 persons. Many multi-brand as well as OEM certified dealerships also have multiple showrooms spread over the region.

Traction towards Family Cars: Large-sized family cars or MPVs dominate the used car industry in Indonesia. Toyota Innova & Avanza, Daihatsu Xenia, Honda Mobilio, Suzuki Ertiga were observed to be some of the best-selling models. In major tier-1 cities, the demand for small city-cars or hatchbacks such as Toyota Agya, Honda Jazz & Brio, and Daihatsu Ayla among others is also increasing due to the shift towards nuclear families.

Impact of COVID-19 on Used Car Sales: COVID-19 has severely impacted the automotive industry in Indonesia. The number of new cars sold in the country in 2020 reached 528 thousand, a decline of over 44%. The used car industry also witnessed a similar downfall in sales due to the lockdown and social distancing norms imposed during the beginning of the pandemic. ~68% of the used car showrooms remained shut or were open only on appointment basis during May to June 2020. Used car inventory with dealers as well as prices also dwindled during the period. However, towards the end of the year sales, started to recover with some dealers reporting 80-90% of the normal sales level. Easy availability of used car loans and higher prices of new cars are expected to lead to recovery of the industry in 2021.

Analysts at Ken Research in their latest publication “Indonesia Used Car Market Outlook to 2025 – By Market Structure (Organized & Unorganized), By Type of Car (MPVs, Hatchbacks, SUVs & Others), By Brand (Toyota, Honda, Daihatsu, Suzuki & Others), By Vehicle Age, By Mileage, By Customer Age and By Region (DKI Jakarta, East Java, West & Central Java, North Sumatera & Others)observed that the used cars market in Indonesia witnessed improvement in the used to new car sales ratio over the period 2014-2020. Increasing value-added service offerings, rising presence of online classified platforms and marketplaces as well as large number of financing companies offering credit for used cars are contributing to the industry’s growth. The Used Car Industry in Indonesia is expected to grow at a CAGR of ~15.7% on the basis of gross transaction value and ~14.2% on the basis of sales volume over the forecast period 2020-2025.

Key Segments Covered: –

Indonesia Used Car Market (On the basis of GTV)

Indonesia Used Car Market (On the basis of Sales Volume)

Indonesia Used Car Market Segmentations (On the basis of Sales Volume)

By Market Structure (On the basis of Sales Volume & GTV)



By Type of Car





By Brand






By Vehicle Age

Less than 1 year

1-3 years

3-5 years

5-8 years

More than 8 years

By Mileage

Less than 20,000 Km

20,000-50,000 Km

50,000-80,000 Km

80,000-120,000 Km

More than 120,000 Km

By Regions

DKI Jakarta

East Java

West & Central Java

North Sumatera


By Age Group of Buyers

18-30 Years

30-50 Years

More than 50 Years

Organized Used Car Market

By Sales Channel

Multi-brand Showrooms

OEM-Certified/Authorized Dealership Outlets

Unorganized Used Car Market

By Sales Channel

Customer to Customer (C2C)

Local Dealerships

Dealerships Covered


Toyota Trust (PT Astra Auto Trust)

Hyundai Auto Safe (PT Hyundai Mobil Indonesia)

Suzuki Auto Value (PT Suzuki Indomobil)

Diamond Smart Auto (PT Mitsubishi Motors Krama Yudha Sales Indonesia)

PT Tunas Ridean Tbk

Online Auto-Classifieds/Platforms Covered

OLX Indonesia





Key Target Audience

Car Dealerships

Car Manufacturers

Car-Rental and Leasing Companies

Online Auto Classified Companies

Industry Associations

Regulatory Bodies

Used Car Auction Companies

Banks & NBFCs

Time Period Captured in the Report:-

Historical Period: 2014-2020

Forecast Period:  2021-2025

Key Topics Covered in the Report: –

Macroeconomic Overview and Overall Automotive Demand in Indonesia

Overview and Genesis of Indonesia Used Car Industry

Trends and Growth Drivers in the Industry and Challenges Faced

Indonesia Used Car Market Size and Segmentations, 2014 – 2020

Ecosystem and Value Chain of Used Car Industry

Customer Decision Making Parameters & Brand Perception Mapping

Cross Comparisons between Major Authorized Dealerships and Online Auto-Classifieds/Platforms and Company Profiles

Future Market Size and Segmentations, 2020-2025F

Covid-19 Impact on the Industry, the Way Forward & Upcoming Online Business Models

Analyst’s Recommendations

Related Reports by Ken Research: –

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications

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