Indonesia Used Car Market Research Report and Industry Forecast

Indonesia Used Car Market Size and Share:

Indonesia used car market size reached 1.5 Million Units in 2024. The market is expected to reach 1.9 Million Units by 2033, exhibiting a growth rate (CAGR) of 3.26% during 2025-2033. The market growth is attributed to rising middle-class income, easy availability and diversity of used cars, increasing demand for affordable personal mobility, growing digital platforms for vehicle resale, rapid urbanization across the country, and improved access to vehicle financing.

Market Insights:

• Based on region, the market is divided into Java, Sumatra, Kalimantan, Sulawesi, and others.
• On the basis of vehicle type, the market is categorized as hatchback, sedan, sport utility vehicle (SUV), and multi-purpose vehicle (MPV).
• Based on the booking channel, the market is segmented into online, OEM certified/authorized dealerships, and multi brand dealerships.
• On the basis of financing providers, the market is categorized as OEMs, banks, and non-banking financial companies.

Market Size and Forecast:

• 2024 Market Size: 1.5 Million Units 
• 2033 Projected Market Size: 1.9 Million Units
• CAGR (2025-2033): 3.26%

A used car, also known as a pre-owned vehicle, is an automobile that has had a previous owner or owners before it is resold. These vehicles are not brand new and have typically been driven for some time before being put up for sale again. Used cars come in various makes, models, and conditions, ranging from almost new vehicles with low mileage to older cars with more wear and tear. When considering purchasing a used car, it is essential to thoroughly inspect and evaluate its condition, history, and maintenance records. Factors, such as mileage, age, and the overall mechanical and cosmetic condition of the car, play a significant role in determining its value and suitability for the needs of a potential buyer.

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One of the leading drivers of the used car market in Indonesia is the economic situation of the nation. A significant portion of the population falls into the middle-income bracket, making purchasing new cars financially challenging. Used cars offer a more affordable alternative, allowing individuals and families to own a vehicle without the high upfront costs associated with new cars. Additionally, Indonesia is experiencing rapid urbanization, with a growing number of individuals moving to cities for work and better opportunities. Urban areas often have limited public transportation options, making personal vehicles a necessity. Many urban dwellers turn to the used car market to fulfill their mobility needs. Other than this, the used car market in Indonesia offers a wide range of options, from compact city cars to SUVs and even luxury vehicles. This diversity caters to the varied preferences and needs of consumers, contributing to the vitality of the market.

Besides this, as consumers become more knowledgeable and confident about the quality and reliability of used cars, they are increasingly willing to consider them as a viable option. This growing trust in the used car market has positively impacted its growth. In line with this, the rising environmental awareness has prompted some consumers to opt for used cars with lower emissions, as older vehicles are gradually being phased out in favor of more fuel-efficient and eco-friendly models. Furthermore, financial institutions and banks offer financing options specifically tailored for used cars, making them more accessible to a broader range of buyers. Apart from these factors, the digital age has revolutionized the way used cars are bought and sold in Indonesia. Online marketplaces and classified platforms have made it easier for buyers and sellers to connect, expanding the reach of the used car market.

Indonesia Used Car Market Trends:

Digitalization and Online Marketplaces

The market is experiencing a profound digital shift, with consumer buying behavior being influenced by online platforms. Moreover, the expansion of e-commerce and automotive websites has resulted in a more structured and transparent market, allowing buyers to obtain detailed vehicle histories, inspection reports, and financing information online. This change is being fueled by increasing internet penetration, which is reported at over 79.5% in 2024, and digitally native consumers looking for convenience and price comparison. Furthermore, advanced technologies such as AI-based pricing algorithms and virtual inspections have improved trust and efficiency throughout the transaction cycle. Such platforms also provide support for dealers and individual sellers through trade-in services, inventory management, and logistics. The COVID-19 pandemic only served to hasten the reliance on digital channels, compelling traditional dealerships to implement omnichannel retailing strategies. Therefore, digitalization not only spreads used car transactions but also increases market transparency, customer experience, and regional accessibility.

Rising Demand for Affordable Mobility

The demand for the used car market in Indonesia is driven by a growing middle-income population seeking cost-effective mobility solutions. The industry report indicates that as of March 2024, Indonesia's middle class is around 47.8 Million people. With new car prices still beyond the reach of many families because of steep taxes and import levies, the second-hand market is a viable option. Also, urbanization has created more demand for personal transportation within cities where public transport is lacking or unreliable. Used vehicles are a budget-friendly point of entry, especially for first-time car buyers and gig economy professionals who need flexible transportation. Additionally, the increasing presence of auto financing products by non-banking financial companies and online lenders has widened access to the used vehicle market. Models with less than ten years of age and with commensurately low mileage are particularly sought after as consumers place greater emphasis on reliability and resale value. These are driving steady volume growth in used car sales, especially in Jakarta, Surabaya, and other tier-1 and tier-2 cities.

Emergence of Certified Pre-Owned (CPO) Programs

Certified Pre-Owned (CPO) programs are increasingly popular in the marketplace as customers demand greater quality assurance and after-sales support. CPO programs, usually driven by automakers or reputable third-party platforms, entail intensive multi-point checks, refurbishment, and certification to assure vehicle reliability and performance. Purchasers are attracted to CPO vehicles as they come with extended warranties, documented service histories, and limited mileage warranties, which decrease perceived risk and enhance purchasing confidence. This trend is transforming buyer expectations by bringing formalized standards to a traditionally fragmented and casual market. Additionally, CPO programs differentiate professional sellers from peer-to-peer listings, promoting brand loyalty and repeat buying. Motor vehicle OEMs and large dealers have started to implement CPO programs as part of their value-added offerings, complemented by digital verification tools and mobile inspection units. Increased usage of CPO cars is also being driven by Indonesia's increasing consciousness regarding vehicle safety, green standards, and the long-term cost benefits of purchasing a well-serviced pre-owned car.

Indonesia Used Car Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on vehicle type, booking channel, and financing providers.

Vehicle Type Insights:

• Hatchback
• Sedan
• Sport Utility Vehicle (SUV)
• Multi-purpose Vehicle (MPV)

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes hatchback, sedan, sport utility vehicle (SUV), and multi-purpose vehicle (MPV).

Booking Channel Insights:

• Online
• OEM Certified/Authorized Dealerships
• Multi Brand Dealerships

A detailed breakup and analysis of the market based on the booking channel have also been provided in the report. This includes online, OEM certified/authorized dealerships, and multi brand dealerships.

Financing Providers Insights:

• OEMs
• Banks
• Non-Banking Financial Companies

The report has provided a detailed breakup and analysis of the market based on the financing providers. This includes specialized OEMs, banks, and non-banking financial companies.

Regional Insights:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Java, Sumatra, Kalimantan, Sulawesi, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the key players include:

• BMW AG
• Auto Value
• Caroline.id
• Diamond Smart Auto
• Mobil88
• OLX Indonesia (Astra International)
• PT Mercedes-Benz Distribution Indonesia
• PT Tunas Ridean Tbk

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News and Developments:

• May 2025: Toyota Motor Asia (TMA) announced the acquisition of a 40% stake in PT Astra Digital Mobil (ADMO) through a mix of new-share subscription and existing-share purchase. ADMO operates OLX.co.id and the OLXmobbi used-car retail network across 10 major Indonesian cities, and the partnership will leverage Toyota’s technological capabilities alongside Astra’s established automotive ecosystem. This strategic move aims to transform Indonesia’s fragmented used-car market by enhancing access to quality vehicles, financing, insurance, and aftersales services.
• December 2024: CarDekho SEA closed its first-ever external funding round of USD 60 Million, led by Navis Capital Partners and the Dragon Fund. This latest investment will be deployed to expand used car and bike financing, refinancing, classifieds, and inventory funding operations across Indonesia and the Philippines.
• October 2024: Indonesia‑based digital automotive startup Broom secured USD 25 Million in a Series A+ funding round, with Openspace Ventures as the lead investor. The proceeds will accelerate Broom’s ambition to digitize Indonesia’s traditional used‑car dealership sector by scaling its flagship Buyback financing product and expanding its Broom Leasing Channel (BLC) service.
• July 2024: Indonesia-based auto fintech startup Moladin secured USD 50 Million in debt financing from impact-focused lender Lendable to bolster its vehicle financing operations. The partnership aims to enhance financial inclusion and mobility access across Indonesia, supporting underserved micro and small businesses while promoting socio-economic growth through scalable digital solutions.

Indonesia Used Car Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Indonesia used car market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Indonesia used car market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Indonesia used car industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.