Summary

The Japanese Used Car Market is anticipated to grow significantly because of enterprises' growing capacity to offer immersive purchase experiences remotely and more digitization. In addition, a number of finance companies that offer credit for used automobiles and an increase in value-added service offerings are anticipated to support the expansion of the used car industry in the area. Higher interest rates, however, would deter some prospective buyers, which would impede the market's expansion. The market is expanding due to other factors as well, like rising income levels, a growing desire among owners of two-wheelers to switch to smaller, more compact automobiles, shorter car ownership durations, booming import-export, and an increase in the demand for luxury cars. In addition to being less expensive, used automobiles seem to be preferred by consumers in the nation because many of the new cars available are still relatively new between three and seven years old and in good condition, making them excellent options to consider. The used automobile market has seen a notable increase in consumer interest due to the superior value-added services offered by online used car trading platforms in comparison to traditional used car selling techniques. These value-added services help the Japanese used automobile market expand while giving clients peace of mind. Lockdowns and the COVID-19 pandemic caused a sharp decline in the used car market in Japan. Due to buyers' hesitation and less discretionary cash for new car purchases, the slump was not as severe as it was for new car sales; but, as things return to normal, the market is predicted to pick up speed in the upcoming years. Having a car became essential during the pandemic because taking public transportation was dangerous. Individuals who favored public transportation prior to the COVID-19 pandemic may now be prospective buyers in the used automobile market.

According to the research report "Japan Used Car Market Overview, 2029," published by Bonafide Research, the Japan Used Car Market is expected to reach market size more than USD 100 billion by 2029. Used automobiles provide substantial cost savings over new cars, which make them very appealing to purchasers on a tight budget. Japanese automobiles are known for being dependable and long-lasting, which improves their appeal in the used market. Japanese automobiles are subjected to stringent quality control measures both during production and during routine maintenance by their owners. This results in an exceptional pool of pre-owned cars in great condition. Customers feel more confident as a result, and this enhances the market's reputation. Because of the aforementioned causes, used automobiles in Japan tend to keep their value well, while new cars depreciate quickly. They are therefore wise financial investments for both vendors and purchasers. Popular domestic models, uncommon imports, and luxury automobiles are just a few of the remarkably varied selection of vehicles available on the Japanese secondhand car market. This draws in a diverse clientele by accommodating a range of preferences and price points. Encouraging openness and market trust are fostered by thorough inspection and certification programs such as JAAI (Japan Automobile Appraisal Institute), which give buyers comprehensive details about the history and condition of the car. The market has been completely transformed by online marketplaces such as Goo-net and Carouse Japan, which offer easy access to a huge inventory, virtual tours, and online transactions. This has improved accessibility and openness for national buyers and vendors. In an effort to boost the economy and lessen its influence on the environment, the Japanese government promotes the export of used cars. This has increased the market’s recognition and reaches on a global scale.

A falling Japanese yen is driving up the cost of used cars in the nation, which affects markets that depend on Japan's supply of used cars. A fresh interest in Japan's used automobile market has resulted from the yen's present value, which is the lowest it has been in 24 years. This market was already highly sought after because of the well-documented shortages in supply in the country's new vehicle industry. Online players and company-operated used car dealers make up the fragmented Japanese used automobile market. USS Co. Ltd., PROTO Corporation, Trust Co Ltd., ORIX Auto Corporation, Yokohama Toyopet, SBT Japan, and other significant players are among them.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric. Current market leader is the traditional sector. In the Japanese used automobile market, the hybrid segment is undoubtedly gaining substantial traction. In comparison to conventional gasoline-powered cars, hybrid vehicles provide the advantages of lower emissions and increased fuel efficiency in light of the escalating cost of fuel and growing environmental concerns. Japanese consumers, who are becoming more ecologically sensitive and financially conscious, will relate to this. The Japanese government provides substantial tax exemptions and subsidies for the purchase of hybrid cars, both new and old. This lowers the cost of ownership considerably and increases their accessibility to a larger group of consumers. Recent years have seen a major advancement in hybrid technology, which offers increased dependability, performance, and fuel economy. This solves previous worries about older hybrid cars' shortened range or declining batteries.

Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others. In fact, the Japanese used automobile market is seeing a comeback for the hatchback type. Since many people live in densely populated cities, hatchbacks that are small and agile provide the perfect urban mobility solutions. They are fuel-efficient for handling city traffic, simple to park in small areas, and adaptable enough for short trips and daily errands. Hatchbacks often have lighter bodies and smaller engines than larger sedans or SUVs, which leads to improved fuel economy and less operating expenses. Budget-conscious drivers will find this factor appealing, especially in light of Japan's growing fuel costs. In order to accommodate diverse tastes and demands, the hatchback market offers a wide choice of body styles, sizes, and amenities. Buyers can select hatchbacks that suit their budget and lifestyle preferences, ranging from practical family-friendly options to sporty performance models. Furthermore, additional personalization and modification are made possible by the widespread use of aftermarket components and accessories.

Based on Fuel Type market is divided into Petrol, Diesel, Others. In the used car market, gasoline cars especially the earlier models remain substantially less expensive than the more recent hybrid or electric models. They can be afforded by a larger group of consumers, especially those who are on a limited budget or are first-time car owners. The longevity and dependability of Japanese gasoline-powered vehicles is well known. With well-established petrol engine technology and easily accessible maintenance components, many buyers—particularly those from older generations—feel at ease, which may lower long-term ownership costs. The gasoline market offers a wide range of sizes, shapes, and performance levels to meet different demands and tastes. Compared with the still-developing used hybrid and electric market, consumers can discover a greater selection of options within their budget, from fast coupes to useful family sedans.

Based on Size market is divided into Mid-Size, Compact, SUVs. In fact, the used automobile market in Japan is seeing a comeback for the tiny size category. Compact cars provide perfect alternatives for urban mobility as cities in Japan continue to grow. Their reduced size correlates to lower fuel consumption and emissions’, matching with environmental concerns and their maneuverability makes parking and maneuvering tiny streets easier. Compact cars are typically less expensive to buy and maintain than larger sedans or SUVs. These appeals to purchasers on a tight budget, particularly those from younger generations and those who are purchasing their first car and may value financial feasibility over all else. There are many different body types available in the tiny sector, ranging from functional sedans and wagons to sporty hatchbacks. This range accommodates a wide range of preferences and requirements, and the widespread availability of aftermarket components and accessories permits even more personalization and modification.

Based on Vendor Type market is divided into Organized, Unorganized. Even though Goo-net and Carouse Japan are two of the biggest online marketplaces, there is still some significance to the "unorganized segment" of the Japanese used automobile industry, which refers to transactions that take place outside of dealerships and established platforms. In contrast to platforms that impose transaction fees and marketing charges, the unorganized segment typically has reduced overhead, which could result in lower prices for consumers and sellers. In a market where consumers are cost conscious, like Japan, this can be very alluring. Prices and terms can be directly negotiated by buyers and sellers, which may result in more accommodating agreements and customized plans. This could be attractive to people looking for special cars or particular characteristics that aren't easily found on centralized platforms.

Based on By Distribution Channel market is divided into Offline, Online. Due to their ability to link customers with a variety of vehicle sellers and groups, including individual owners and independent dealers, online platforms have been expanding at an exponential rate. To boost their market share and income, these platforms are becoming more widespread throughout the nation. As an example, in September 2022, Trusty Cars Pte. And Softbank Corporation, a significant Japanese telecom provider, announced the creation of CARRO JAPAN Corp., a joint venture that will offer a used automobile subscription marketplace.

Considered in this report:
• Geography: Japan
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report:
• Japan Used car market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Type:
• Conventional
• Hybrid
• Electric

By Body Type:
• Hatchbacks
• Sedan
• SUV & MUV
• Others

By Fuel Type:
• Petrol
• Diesel
• Others

By Size:
• Mid-Size
• Compact
• SUVs

By Vendor Type:
• Organised
• Unorganised

By Distribution Channel:
• Offline
• Online

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Used Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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