Description

Although marketplaces were already offering their services online, the COVID-19 pandemic prompted many transactional companies to start offering their services digitally too. This resulted in more competition, an expansion of the market, and the development and implementation of different digital tools and services in order to cater to clients’ needs in a different environment.

New and used vehicles can be acquired in a variety of ways in Latin America, including through official car dealerships, marketplaces, or online transactional companies (understood as companies operating digitally, purchasing used vehicles from individuals and businesses and reselling them on their website). Many used car purchases happen between two individuals, with no company involved at any point in the process. The used vehicle market in Latin America is not completely formalized; often the information between parties is scarce, which can lead to scams or fraudulent purchases.

Considered in the growth stage, eCommerce for new and used vehicles in the region is slowly gaining more participants. The regional market still has potential for evolution and the development of more customer-oriented, value-added aftermarket services or bureaucratic assistance while also prioritizing transparency in offers and transactions as well as technological solutions such as digital wallets or pricing services based on algorithms.

In a field of more than 20 regional industry participants, Frost & Sullivan independently plotted the top 11 companies in this Frost Radar™ analysis.
The Frost Radar™ reveals the market positioning of each company using its Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies based on their strengths, opportunities, and market positioning. It discusses strategic market imperatives and the competitive environment that vendors operate in, and makes recommendations for each provider to spur growth.