The demand for vehicles isn’t just limited to new cars, it seems. The used car industry is also enjoying a boom in business, and is reportedly on-track to register double-digit growth in sales this year, doing so right into 2024, according to Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president Datuk Tony Khor.
He said that while less than 400,000 used cars were sold in 2021, this year is expected to see more than 400,000 units being sold. “We are projecting double-digit growth for 2022, 2023 and 2024, and predict a compounded annual growth rate of 10% over the next three years,” he told The Star in an interview.
Khor said that the sector is expected to demonstrate considerable growth in the future, led by the popularity – and convenience – of online used car platforms as well as better consumer sentiment.
He added that in developed countries, the ratio of used car sales versus new car sales is about two to one, with two used cars being shifted for every new car sold. While it is certainly lower in Malaysia, Khor is optimistic that with time, the sales ratio of used cars versus new vehicles here will be comparable to that of other countries.
Khor is hopeful that sales of new cars will continue to grow. “As more people purchase new cars, the more they will need to trade in their old vehicles,” he said. However, the ongoing shortage of new cars has also
created issues for the used car market, with many opting to hold on to their current vehicles.
Back in June, Khor said that this had led to a lack of supply of used cars, with demand for these having increased 8% in the first quarter of 2022, while pricing had also increased by around 5% for cars that were less than five years old.
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