Mapping SEA’s auto startups: Competition drives push into financing, EVs gain ground

In recent years, a number of automotive startups have been expanding in Southeast Asia. They are all racing to harness the automobile market’s potential, particularly the used-car segment.

The region’s used-car sector is expected to record a compound average growth rate of 6.3% from 2022 to 2027, according to research from Mordor Intelligence.

Auto ecommerce players that have a regional presence include Carro, Carsome, Carousell, iCar Asia, and CarDekho. These players have made strategic moves to grow their markets through strategic investments and acquisitions.

Singapore-based Carro, for instance, entered Malaysia by investing in the local auto marketplace MyTukar.

Meanwhile, its Malaysian competitor Carsome has acquired iCar Asia, which operates marketplaces such as Carlist.my in Malaysia, Mobil123 and Carmudi in Indonesia, and One2Car in Thailand.

Indian firm CarDekho, on the other hand, established its presence in Southeast Asia by launching its Zigwheels platform in the Philippines and Malaysia as well as Oto.com in Indonesia and Singapore. CarDekho also owns a majority stake in Carmudi Philippines.

Stiff competition

Apart from regional firms, the auto ecommerce space also consists of local players focused on a single market. This makes the industry a red ocean, especially in Indonesia, Singapore, and Malaysia.

Some companies have struggled in the past year amid intensifying pressure to hit profitability.

India-based Cars24 recently pulled out of Indonesia following “months of deliberation.”

OLX Autos is reportedly selling its business in Indonesia while Carsome and Moladin laid off some of their employees in 2022.

See also: ​​Can Carsome break even in 2023?

Meanwhile, Southeast Asian ecommerce heavyweights like Shopee and Lazada also sell automotive products. Both companies have an automotive category on their platforms, selling items such as vehicle accessories and spare parts.

Moving beyond marketplace

EV on the rise