Market assessment of growth opportunities for an online used car platform in Malaysia

Situation

Our client was considering an acquisition of an equity stake in a Malaysian online used car platform

We were engaged to advise on the potential enterprise value of the used car platform, which included an assessment on the industry and market dynamics, competition and prospects of the online platform to grow to scale

Approach

• Discussed the market dynamics, growth potential, and addressable market of the used car industry in Malaysia 

• Provided an overview of the used car industry in Malaysia, key demand-supply drivers, industry trends and projected growth rates 

• Assessed the competitive landscape, and carried out primary interviews with key players, to synthesise their business models, service offerings and competitive advantages 

Impact

• Detailed market sizing model to estimate the total addressable market and growth potential of the online used car market in Malaysia
  

• Assessed market potential of new ancillary services of the platform such as online car financing, insurance, car service and extended warranty

• Developed financial projections based on findings from the market assessment

• Evaluated synergies from the new ancillary services to the broader core business

Used car market ecosystem

Online used car marketplaces have become increasingly popular in Malaysia and the region