Summary

The pandemic-related delays to the supply chain are expected to result in a limited supply of new cars, which will propel growth in the used car market in Mexico. Furthermore, since secondhand cars are a more affordable option, financial difficulties are driving up demand for them. To avoid fraud and purchasing defective cars, customers must exercise caution. In addition, Mexico's growing economy is one of the causes fueling the expansion of the used automobile industry there. Furthermore, as cities became more populated, so did the need for individual mobility. For many buyers, used cars are a more appealing option because of Mexico's high rate of depreciation on new automobiles. Additionally, those who must commute to work or education will find that used cars are more essential due to the restricted options available for public transportation. The secondhand automobile market is the ideal answer for Mexico's enormous population in search of reasonably priced transportation solutions. Having more financing alternatives available makes it quicker and easier for customers to purchase used cars. In addition, Mexico's middle class is growing, which could help the used car market because people need more personal mobility. The demand for used cars is so great that Mexico's used car market is likely to continue growing. Despite economic ups and downs, the market has continued to thrive; in fact, despite the impact of COVID-19 on new car sales, the market has performed flat. Used cars are considerably more affordable than new ones, which opens up the market to a wider spectrum of buyers in a nation with diverse income distribution. Mexico has a slower rate of depreciation than other developed markets, which makes used cars more affordable and preserves their value as an asset. The used automobile industry is dominated by Japanese models like Nissan, Honda, and Toyota since of their reputation for affordability and dependability. Certain models are also very popular, such as the Volkswagen Jetta.

According to the research report "Mexico Agriculture Tractor Market Overview, 2029," published by Bonafide Research, the Mexico Agriculture Tractor Market is expected to reach market size more than USD 25 billion by 2029. The present state of the economy and persistent worries about road safety are the primary causes of the slow increase. Notwithstanding, the Mexican used automobile business is still very profitable. As a result, it is both one of the fastest-growing and most expensive marketplaces in Latin America. The robustness of the Mexican automobile market can be attributed to multiple factors. First of all, individuals in Mexico have a lot of spare cash, which allows them to purchase expensive cars. Second, a large percentage of the population has a car. Third, Mexico's well-developed ports and road system facilitate the easy importation of automobiles from other nations. Nonetheless, there are several difficulties facing the Mexican auto sector. One issue is that the industry lacks enough competent people to meet demand. The government's reluctance to invest in new auto plants and instead of concentrating on creating new technology for the automotive industry is another issue. Because of this, there have been fewer new auto plants in recent years, which have resulted in a modest increase in vehicle pricing. The Covid-19 epidemic has in the past caused a halt to activity. The market has, nevertheless, gradually recovered. There is a ton of amazing growth chances in the market right now. Due to the ongoing effects of the global recession on the nation's economy, customers are probably searching for less expensive solutions. This implies that regardless of how fantastic they may be, used cars are probably not going to be very popular. Those who want to purchase an automobile in Mexico have a few options. Automobile dealerships can provide reasonable pricing on new or used cars, but locating information about these sales alternatives can be challenging. Reviews of new and used automobiles in Mexico are available on websites like Edmunds, along with advice on how to strike a good bargain.

Based on Vehicle Type market is divided into Conventional, Hybrid, and Electric. The Mexican used automobile market is still dominated by the conventional category, but there has been notable development in the hybrid area as well. Fuel-efficient hybrids are becoming more and more appealing as gasoline prices rise in Mexico since they provide substantial long-term savings when compared to traditional gasoline-powered cars. In order to further reduce the cost of purchase and increase the competitiveness of hybrid vehicles, the Mexican government provides tax cuts and other incentives for buying them. In Mexico, people are becoming more conscious of air pollution and climate change, which is why some are opting for hybrid vehicles as more environmentally friendly options.

Based on Body Type market is divided into Hatchbacks, Sedan, SUV & MUV, Others. Hatchbacks currently hold the largest market share. Both the growing middle class in Mexico and the rising number of individuals utilizing vehicles for transportation are responsible for this rise. Additionally, the government's emphasis on lowering pollution and encouraging the purchase of green vehicles will support market expansion.

Based on Fuel Type market is divided into Petrol, Diesel, Others. Although petrol segment is leading, the used automobile market in Mexico has shown indications of a resurgence of interest in the diesel segment. When it comes to bigger vehicles like SUVs and pickup trucks, diesel engines frequently provide better fuel efficiency than gasoline engines. If users are worried about rising fuel prices, this can result in large cost savings. Diesel engines are preferable to gasoline engines for transporting heavy loads or traversing difficult terrain because they typically have more torque and pulling capacity. In a nation with such a diversified geography as Mexico, this becomes pertinent.

Based on Size market is divided into Mid-Size, Compact, SUVs. Indeed, there is a boom in demand for compact cars in the Mexican used car market. This may be attributed to a number of variables that combine to make these cars both affordable and appealing to a broad spectrum of consumers. Compact automobiles often have cheaper purchase prices, maintenance expenses, and fuel consumption when compared to larger segments such as SUVs and trucks. They are therefore a more affordable choice for a large number of Mexican customers. Compact automobiles hold their worth better over time since they typically degrade more slowly than other car classes. This helps to explain their general affordability and may even turn them into a wise investment. The growing middle class in Mexico is driving up demand for reasonably priced, useful cars like small cars. Their value-added functionality meets the demands and expectations of this particular sector.

Based on Vendor Type market is divided into Organized, Unorganized. The "unorganized segment" of the used automobile market in Mexico, which includes smaller independent dealerships and individual transactions, is a large and sometimes contentious market segment. Although it has benefits like flexibility and possibly lower costs, there are also many worries regarding transparency and the caliber of the vehicles. In comparison to larger chain dealerships, private sales and smaller dealerships frequently have reduced overhead costs, which allow them to potentially offer lower rates on used cars. This is especially alluring in a market where prices are critical, such as Mexico. In private transactions, buyers and sellers can communicate directly, giving purchasers the opportunity to possibly negotiate better terms and obtain information about the history and condition of the vehicle. In comparison to larger establishments, smaller dealerships may also be able to provide more individualized care and flexibility.

Based on By Distribution Channel market is divided into Offline, Online. Although there is no denying that digital platforms are upending Mexico's conventional auto industry, the offline sector which includes private sales and traditional dealerships remains highly relevant and of considerable importance. Before making a purchase, many buyers especially those who are not accustomed to buying cars online preferred the in-person experience of looking over cars, going for test drives, and speaking with vendors. This increases one's sense of authority and self-assurance in the choice. Even if more people in Mexico are using the internet, there are still differences, especially in rural areas. Offline channels continue to be the major way for people without digital literacy or with restricted internet connection to reach the used automobile market.

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

Aspects covered in this report:
• Mexico 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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