Thai used-car market heats up as foreign startups jump in

[steveluv]

https://asia.nikkei.com/Business/Automobiles/Thai-used-car-market-heats-up-as-foreign-startups-jump-in?utm_campaign=GL_asia_daily&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=1&pub_date=20220317190000&seq_num=23&si=44594#

Thai used-car market heats up as foreign startups jump in
Online dealers hope to attract more consumers amid rising demand

According to Deloitte, 21% of Thai consumers would like at least part of their next vehicle purchase to be done online. (Screenshot from  CAR24, Carro, and Carsome webstite)
APORNRATH PHOONPHONGPHIPHAT and DYLAN LOH, Nikkei staff writersMarch 17, 2022 12:20 JST

BANGKOK/SINGAPORE -- Used-car sales in Thailand are set to grow again this year after a stellar 2021 due to a shortage of new cars, with online dealers such as India's Cars24 and Malaysia's Carsome entering the market to capitalize on fresh demand.

On March 3, Carsome said it had partnered with PTT Oil and Retail Business -- a subsidiary of Thailand's energy conglomerate PTT -- in a move that analysts said would help the Malaysian company expand its used-car network and boost online vehicle purchases.

"It is a 'blue ocean' market," said Pinyo Tanawatcharaporn, president of the Association of Used Cars, referring to an industry where there is little competition. The association is expecting Thailand's secondhand car market to grow 10-15% this year.

The demand for cars has grown as commuters shy away from public transport to avoid crowds as a result of the COVID-19 pandemic. However, the pandemic's hit to the economy has weakened spending power, which has made buyers look for cheaper secondhand alternatives. Furthermore, the global chip shortage has constrained automakers' ability to produce new vehicles.

Thailand's used car sales grew 7.5% to around 140 billion baht ($4.2 billion) in 2021, with further growth expected this year, according to Kasikorn Research Center. Pinyo said 1.2 million used cars were sold last year.

Internet-based dealers have clocked on to Thailand's large consumer base as a means to fuel growth in Asia outside of their home markets. India's Cars24, for instance, launched its Southeast Asian foothold in the kingdom last November after its rivals -- Singapore's Carro and Malaysia's Carsome -- had already set up a Thai presence.

All three startups are interested in generating car sales from their Thai digital platforms. According to Deloitte's "2022 Global Automotive Consumer Study," 21% of consumers in Thailand will prefer fully or partially virtual transactions to buy their next vehicle, while only 12% in the Philippines and Indonesia chose to do so.

The report mentioned that consumers in Singapore, Thailand and Vietnam show a greater willingness to transact online.

Startups like Cars24 hope to shift buyers online, particularly given the acceleration of digital penetration in Southeast Asia due to the COVID-19 pandemic. Like its competitors Carro and Carsome, Cars24 is doing this with hefty funding from backers.

Last September, Cars24, which bills itself as India's largest online portal for used vehicles with an inventory of over 10,000 cars, announced the closing of a $450 million Series F equity round, which included investors like SoftBank Vision Fund 2 and Chinese tech giant Tencent Holdings.

Carro CEO Aaron Tan. The online car sales platform received investment from SoftBank Vision Fund 2 in June 2021. (Photo by Takashi Nakano)

In June, Carro announced that SoftBank Group had led its $360 million Series C funding round, which included Indonesia-based fund EV Growth, among other backers.

The same year, Carsome announced the closing of its $170 million Series D2 round, bringing the company's valuation to $1.3 billion and prompting the startup to claim that it was Malaysia's largest technology unicorn.

"I have been in the market for many years, but I've never seen such big investments from online used car platforms in the Thai market," said Pinyo from the Association of Used Cars. "That has forced us to switch to both online and offline outlets in order to survive, as we have realized that consumers' behaviors have changed."

He said some consumers were worried about the quality of used cars bought online. To assuage those fears, the association has formed a partnership with Japanese vehicle inspection specialist Goo to verify the cars.

"That has made it easier for Thai used-car sellers to adjust their businesses by moving online, and some of our members have already built their own webpages to meet changing consumer demands," Pinyo said.

[kobayashiGT]

Hmmm. Interesting.

[Mooose]

1 hour ago, steveluv said:

https://asia.nikkei.com/Business/Automobiles/Thai-used-car-market-heats-up-as-foreign-startups-jump-in?utm_campaign=GL_asia_daily&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=1&pub_date=20220317190000&seq_num=23&si=44594#

Thai used-car market heats up as foreign startups jump in
Online dealers hope to attract more consumers amid rising demand

According to Deloitte, 21% of Thai consumers would like at least part of their next vehicle purchase to be done online. (Screenshot from  CAR24, Carro, and Carsome webstite)
APORNRATH PHOONPHONGPHIPHAT and DYLAN LOH, Nikkei staff writersMarch 17, 2022 12:20 JST

BANGKOK/SINGAPORE -- Used-car sales in Thailand are set to grow again this year after a stellar 2021 due to a shortage of new cars, with online dealers such as India's Cars24 and Malaysia's Carsome entering the market to capitalize on fresh demand.

On March 3, Carsome said it had partnered with PTT Oil and Retail Business -- a subsidiary of Thailand's energy conglomerate PTT -- in a move that analysts said would help the Malaysian company expand its used-car network and boost online vehicle purchases.

"It is a 'blue ocean' market," said Pinyo Tanawatcharaporn, president of the Association of Used Cars, referring to an industry where there is little competition. The association is expecting Thailand's secondhand car market to grow 10-15% this year.

The demand for cars has grown as commuters shy away from public transport to avoid crowds as a result of the COVID-19 pandemic. However, the pandemic's hit to the economy has weakened spending power, which has made buyers look for cheaper secondhand alternatives. Furthermore, the global chip shortage has constrained automakers' ability to produce new vehicles.

Thailand's used car sales grew 7.5% to around 140 billion baht ($4.2 billion) in 2021, with further growth expected this year, according to Kasikorn Research Center. Pinyo said 1.2 million used cars were sold last year.

Internet-based dealers have clocked on to Thailand's large consumer base as a means to fuel growth in Asia outside of their home markets. India's Cars24, for instance, launched its Southeast Asian foothold in the kingdom last November after its rivals -- Singapore's Carro and Malaysia's Carsome -- had already set up a Thai presence.

All three startups are interested in generating car sales from their Thai digital platforms. According to Deloitte's "2022 Global Automotive Consumer Study," 21% of consumers in Thailand will prefer fully or partially virtual transactions to buy their next vehicle, while only 12% in the Philippines and Indonesia chose to do so.

The report mentioned that consumers in Singapore, Thailand and Vietnam show a greater willingness to transact online.

Startups like Cars24 hope to shift buyers online, particularly given the acceleration of digital penetration in Southeast Asia due to the COVID-19 pandemic. Like its competitors Carro and Carsome, Cars24 is doing this with hefty funding from backers.

Last September, Cars24, which bills itself as India's largest online portal for used vehicles with an inventory of over 10,000 cars, announced the closing of a $450 million Series F equity round, which included investors like SoftBank Vision Fund 2 and Chinese tech giant Tencent Holdings.

Carro CEO Aaron Tan. The online car sales platform received investment from SoftBank Vision Fund 2 in June 2021. (Photo by Takashi Nakano)

In June, Carro announced that SoftBank Group had led its $360 million Series C funding round, which included Indonesia-based fund EV Growth, among other backers.

The same year, Carsome announced the closing of its $170 million Series D2 round, bringing the company's valuation to $1.3 billion and prompting the startup to claim that it was Malaysia's largest technology unicorn.

"I have been in the market for many years, but I've never seen such big investments from online used car platforms in the Thai market," said Pinyo from the Association of Used Cars. "That has forced us to switch to both online and offline outlets in order to survive, as we have realized that consumers' behaviors have changed."

He said some consumers were worried about the quality of used cars bought online. To assuage those fears, the association has formed a partnership with Japanese vehicle inspection specialist Goo to verify the cars.

"That has made it easier for Thai used-car sellers to adjust their businesses by moving online, and some of our members have already built their own webpages to meet changing consumer demands," Pinyo said.

i thought many people still want to touch and see the car before buying, especially used car?

but i suppose useful for large country like thailand because most people outside krungthep in the provinces would just wander into the town dealer to look at what is available and choose from there - no one in pattani will go and look at a car for sale in chiangrai for example unless its really something special ..

Edited March 18, 2022 by Mooose

[Jamesc]

Jamesc is pleased to announce a Joint Venture with Kun Saiya Sukaporn to start our good quality affordable car hub in Bangkok Thailand.

The new company will be called

Jamesc Saiya Sukaporn Hub of good quality used cars at affordable prices.

 

[DOBIEMKZ]

3 hours ago, Jamesc said:

Jamesc is pleased to announce a Joint Venture with Kun Saiya Sukaporn to start our good quality affordable car hub in Bangkok Thailand.

The new company will be called

Jamesc Saiya Sukaporn Hub of good quality used cars at affordable prices.

 

How about your side business?😁

[Jamesc]

41 minutes ago, DOBIEMKZ said:

How about your side business?😁

I will still keep a hand in!

[BanCoe]

4 hours ago, Jamesc said:

Jamesc is pleased to announce a Joint Venture with Kun Saiya Sukaporn to start our good quality affordable car hub in Bangkok Thailand.

The new company will be called

Jamesc Saiya Sukaporn Hub of good quality used cars at affordable prices.

 

Unicorn Conspermed with your extra frills ser-Vices 🤣🤣

[DOBIEMKZ]

1 hour ago, Jamesc said:

I will still keep a hand in!

I mean what name for your spa in tomyam land?😁

[Jamesc]

31 minutes ago, DOBIEMKZ said:

I mean what name for your spa in tomyam land?😁

I am not competing in the Spa market in Bangkok.

That's like selling Tom Yum soup in Thailand!

[DOBIEMKZ]

15 minutes ago, Jamesc said:

I am not competing in the Spa market in Bangkok.

That's like selling Tom Yum soup in Thailand!

May be those Thai ladies have been yearning for different flavour.😁

[Jamesc]

It's ok. Everyone knows Sukaporn is better than Thotsoporn.

5 hours ago, yishunite said:

I got bad news for u... ur fiercest rival Thotsoporn Star Cars is offering big discount and freebie... tiagong free service thrown in with all the specials!! 

 

[1fast1]

On 3/18/2022 at 8:51 PM, Jamesc said:

I will still keep a hand in!

That sounds like a hard job, but you're a stand up guy! 😁

[BanCoe]

8 hours ago, Turboflat4 said:

That sounds like a hard job, but you're a stand up guy! 😁

@Jamesc will be on top of everything, dunch wori 😁