Home Automobile Taiwan Used Vehicle Market Outlook to 2025: Ken Research
The report titled “Taiwan Used Vehicle Market Outlook to 2025 – By Type (Sedans, SUV’s, Hatchbacks, MPVs, LCVs and Others), By Vehicle Age, By Cities, By Organized and Unorganized, By Brand (Toyota, Mitsubishi, Honda, Nissan, Mercedes Benz, Mazda and Others), By Distance Driven and By Price Range” provides a comprehensive analysis of the Used Vehicle market in Taiwan. The report also covers the overview and genesis, market size in terms of gross transaction value and sales volume, business models, trends and developments, issues and challenges, regulations in Taiwan. The report provides value chain and SWOT analysis, buying decision parameters, competitive scenario and company profiles. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Taiwan Used Vehicle Market Overview and Size
Taiwan Used Vehicle market in terms of sales volume increased at a single-digit CAGR over the review period 2013-2018. The market was observed to be at the late growth stage owing to increasing competition in the market which allows the offering of varied models of vehicles at lower prices, faster vehicle replacement rate, easy import procedures, and relatively stable average ticket prices. In Taiwan, people prefer buying used vehicles due to their increased affordability and a wide range of offerings at an affordable price point.
The Taiwanese government has also adopted certain strategies such as the “Scrappage Program” to promote discard of vehicles which are older than 6 years. The Government awarded a rebate of NTD 50,000 against the purchase of new vehicle against discarding of a used vehicle. This has led to intense competition in the used car market as new car sales are growing at a faster pace vis a viz used car.
Taiwan Used Vehicle Market Segmentation
By Distribution Channel: In Taiwan, used vehicles are largely being sold through the organized and unorganized market. Organized market dominates in terms of sales volume largely due to rising demand of multi-brand and captive dealers in the market. There are approximately 4000 organized dealers in Taiwan. On the other hand, unorganized dealers are slowly losing market share due to lack of trust in consumers’ mind while purchasing through an unorganized dealership.
By Type of Vehicle: Sedans accounted for the highest market share in 2018. Sedans remained the most popular car type as they are perceived as conferring a higher social status. SUV’s accounted for the second-highest market share followed by Hatchbacks and Multi-Purpose Vehicle (MPV’s), Light Commercial Vehicles (LCVs) and others.
By Vehicle Age: Used cars under the age bracket of 2-4 years accounted for the highest market share in 2018 due to the average ownership period of 3.4 years in Taiwan. The sale of used cars is followed by 0-2 years of vehicle age as these cars have the heavy body type, better engine capacity (high horsepower) and have a high resale value.
By Cities: High population and developed infrastructure, Taichung City, New Taipei City and Taoyuan City accounted for the highest share in terms of sales volume in 2018. Kaohsiung City, Taipei and Tainan along with other cities contributed the remaining share in total sales volume of used Vehicles in the country.