Instead of new, more opting for used cars in Indonesia

Instead of new, more opting for used cars in Indonesia

Sales of new cars may be on the decline in Indonesia, but that doesn’t mean that people aren’t buying cars – they are, but are taking the second-hand approach. According to a report by the Jakarta Post, the used car market is blossoming, and the numbers are growing quickly.

It seems that consumers in the republic are opting for used cars not only because they are cheaper, but because many of the vehicles coming into the market are still relatively new – at around three- to seven-years in age – and in good condition, making them very viable options to explore.

According to data from the Association of Indonesian Automotive Manufacturers (Gaikindo), retail sales of new cars in the country amounted to 499,573 vehicles in the first half of 2019, a drop of 11% compared to the 561,680 units managed in the same period last year. Retail sales of new cars in May-June dropped 30% year-on-year from 93,837 to 65,657 units.

Meanwhile, sales of second-hand cars have continued to grow. “Monthly sales of used cars can reach 300,000 cars, which is quite high,” said Johnny Widodo, the CEO of online marketplace BeliMobilGue.

Instead of new, more opting for used cars in Indonesia

The report adds that with the Jakarta administration expanding the odd-even traffic policy that is in place next month and planning to limit vehicle age to a maximum 10 years by 2025, the second-hand car market is set to gain even more traction.

“Many people sell their cars after [driving them] three to seven years,” said Johnny. After the vehicle age regulation comes into play, he expects that more people will sell their cars sooner. “Used car sales could grow between 10 and 30% a year by 2023,” he stated. He added that the expanded odd-even policy in Jakarta could boost used car sales further, the change in regulation enabling a number of buyers to own more than one car.

He added that from a business perspective, the opportunities in the second-hand car market were promising, because the sector had no dominant players. “Indonesia’s used car market is extremely fragmented. Many dealers run their business individually,” he said.

Statistics Indonesia (BPS) records show that an estimated 16 million cars were on roads across the country in 2017, with both new and used car markets currently dominated by multi-purpose vehicles (MPV). This is reflected by Gaikindo data, which shows that 11 out of the 15 top-selling vehicle models in the first half of 2018 were MPVs.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Agreed mas. those reliable mobil jepang here still new at around 3 to 10years and in good kondisi.

    Like or Dislike: Thumb up 5 Thumb down 1
  • Sambal udang on Aug 20, 2019 at 10:39 am

    Even though Proton cars got no RV, people doesn’t want to buy it. People will always tend to go for the high RV game changing Perodua as Perodua have better quality and long-lasting

    Like or Dislike: Thumb up 2 Thumb down 7
  • AL version
    Instead of new, more looking at used cars in Indonesia
    Boyz version
    In Indonesia, more people are looking at used cars instead of new.

    Please vote. :)

    Like or Dislike: Thumb up 2 Thumb down 1
  • Celup King on Aug 20, 2019 at 2:03 pm

    Habislah Perodua! Lucky Proton made the game changing decision to go Brunei instead. Perodua is game over in Indonesia.

    Like or Dislike: Thumb up 5 Thumb down 1
  • vVivi Zurianti on Aug 20, 2019 at 3:16 pm

    In Mesia, driving used car is perceived as “no money”. Changing new car every year (esp. during Raya, CNY, Deepavali balik kampung) gives the impression of “successful and rich” to frens, and relative.

    Old cars are fine, with good maintenance given. Selected old skool cars these days cost as much as 40 to 50k.

    Like or Dislike: Thumb up 4 Thumb down 0
  • brian on Aug 20, 2019 at 8:44 pm

    I can see Malaysian importers of used Mitsubishi Xpander/Nissan Livina in years to come.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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