INDIA USED CAR MARKET

India used car market is projected to grow at a rapid CAGR of 12.8% between 2025 and 2032 primarily driven by its growing affordability along with rapid urbanization and a rising interest in luxury cars.

Major Market Drivers and Emerging Trends

In 2024 the used car market in India has overtaken new car sales by selling more than 5.5 million units. This growth is supported by growing consumer confidence in organized dealers and a widening gap in affordability between used and new cars along with an increase in financing opportunities.

The main factor driving the India used car market size growth is the growing affordability and easier access to used cars in comparison to new vehicles. New car prices have risen by 32% while secondhand vehicles experience a 24% increase. The growing disparity makes secondhand vehicles a more economical option for an increasing number of buyers. Used cars offer middle income consumers in the country a more affordable route to vehicle ownership which helps them avoid the significant prices and depreciation that come with new vehicles. In a market driven by price sensitivity and a rapidly growing middle class, this economic benefit is vital.

Market growth has been significantly supported by car dealerships and financial institutions offering personalized financing solutions for used cars. Financial offerings have helped lower the entry barriers for many buyers to overcome the high initial costs of owning a vehicle. Reputable and affordable financing options are crucial in enabling market growth.

Urbanization is further accelerating the need for personal mobility options. Urban centers in the country are growing and public transport struggles to meet demand. Therefore many people rely on personal vehicles for their commuting and transportation needs.

Furthermore digital platforms have revolutionized the marketplace that offers transparency and numerous choices for prospective buyers which further supports market growth. Online marketplaces basically use technology to enable price comparisons and ownership history which boosts consumer confidence and streamlining the buying experience.

The used car market size in India is also growing driven by a rising interest in luxury vehicles with the used luxury car sales rising by 20%. Owning a luxury car was once a challenge due to high costs but the trend is shifting because used luxury vehicles become more accessible to consumers. The market is evolving into a more organized space driven by accessible financing options and more affordable entry prices. With more luxury cars available at attractive prices and organized players entering the segment, the used car market in India is poised for continued growth.

Additionally the regulatory landscape has indirectly contributed to market growth. In response to policies including odd-even rule in Delhi many consumers are being driven to consider secondary vehicles as an affordable alternative for daily commutes. With constant changes in regulations like the Bharat Stage emission standards, new cars often become obsolete more quickly which leads consumers to turn to secondhand vehicles as a practical option.

The used car market growth has been largely led by Maharashtra and Delhi which highlights the varied regional demands across the country. Urbanization in Maharashtra especially in places including Mumbai has contributed to a growing need for personal vehicles. The used car market growth in Delhi is propelled by the increasing population with people migrating to the national capital to seek employment prospects. The rising urban population is therefore driving the demand for affordable transportation options which further contributes to market growth.

Based on vehicle type the hatchback segment is expected to lead the market driven by multiple factors. Fuel efficiency and easy handling in crowded cities make hatchbacks the favored option for many Indian consumers. These cars are especially popular among first time purchasers and individuals seeking an economical secondhand vehicle. Its smaller size makes them ideal for urban regions where parking areas are often limited. Even though SUVs are becoming more popular in the new car sector hatchbacks remain the preferred choice in the used car market owing to their practicality and affordability.

Based on vendor type the organized segment is expected to lead the market in the forecast years. Authorized dealerships and online platforms in the organized segment are offering advantages including guaranteed quality and convenient financing solutions. The shift towards organized channels is becoming increasingly evident in the market which was once largely led by unorganized players or individual sales. In response to the market shift, established brands and emerging players are expanding their presence through certified preowned programs. By offering quality checks and after sales support, these programs help alleviate the typical concerns regarding used car reliability. Mahindra & Mahindra and Maruti Suzuki India were early entrants into the Indian used car market which establishes themselves as key players.

Based on fuel type the petrol segment is expected to experience the highest CAGR. The preference for petrol cars is driven by their lower initial costs and the shrinking price difference between diesel and petrol fuels which makes them more affordable to maintain. The increasing emission standards and concerns regarding the durability of diesel vehicles are pushing consumers to prefer petrol types. Petrol engines are gaining popularity among buyers owing to their simpler maintenance and quieter performance.

Based on sales channel the offline segment accounted for the largest market share. Consumer inclination towards purchasing used cars from recognized dealers largely drives the segment dominance. Offline dealerships are also considered more reliable owing to the ability to inspect the used vehicle’s condition in person which is something not possible with online platforms. However the online segment is growing rapidly driven by digitalization which has minimized the need for initial contact with the dealer. Through their personal devices customers can quickly engage and retrieve information with ease. The increasing internet penetration and convenience offered by online shopping are further fueling the segment growth.

Top Market Players

Several leading companies in the market are Mahindra First Choice, OLX, CARS24, among others.

Key Developments

• • In 2023 CARS 24 expanded its car refurbishment hubs to further enhance the product quality. These centers will allow the company to refurbish more than twenty thousand cars each year.
  • In 2023 Mahindra First Choice expanded its presence in Maharashtra by opening 10 new outlets which strengthened its position in the market.

Segments covered in the Report:

The India Used Car Market has been segmented on the basis of Vehicle Type, Vendor Type, Fuel Type, and Sales Channel. Based on Vehicle Type, the market is segmented into Hatchbacks, Sedans, and Sports Utility Vehicles (SUV). Based on Vendor Type, the market is segmented into Organized and Unorganized. Based on Fuel Type, the market is segmented into Petrol and Diesel. Based on Sales Channel, the market is segmented into Offline and Online.

Market Segmentation

India Used Car Market by Vehicle Type

• • Hatchbacks
  • Sedans
  • Sports Utility Vehicles (SUV)

India Used Car Market by Vendor Type

• • Organized
  • Unorganized

India Used Car Market by Fuel Type

• • Petrol
  • Diesel

India Used Car Market by Sales Channel

• • Offline
  • Online

Kenya Grain Storage Silos Market Leading players

• • Mahindra First Choice
  • OLX
  • CARS24