India's Used Car Market: Gearing Up for Explosive Growth
India's used car market is set to expand from 4.6 million sales to an estimated 10.8 million by 2030, driven by a 13% CAGR. A shift in consumer preferences towards affordability and dependability has fueled the growth, while EV sales and SUV popularity underscore emerging trends.

- Country:
- India
India's second-hand car market is predicted to experience unprecedented growth, according to a recent report by auto tech firm CARS24. Sales are projected to soar from 4.6 million in 2023 to a staggering 10.8 million by 2030, reflecting an impressive compound annual growth rate of 13%.
As economic trends push consumers towards more affordable and reliable vehicles, the used-car marketplace is thriving in contrast to the new car sector. "The once niche pre-owned car market has redefined ownership for Indian consumers," stated Gajendra Jangid, CARS24 Co-Founder.
In 2024, eco-friendly drivers began favoring electric vehicles, with sales quintupled over the previous year, particularly in Maharashtra, Karnataka, and Delhi. SUVs continue to capture significant market share, enjoying popularity due to their spaciousness, versatility, and prestige.
The Average Selling Price (ASP) of new vehicles is on the rise, increasing the disparity between the cost of new and used cars. New car ASPs surged by 32%, whereas used cars noted a 24% hike. Such trends emphasize market dynamics driving pre-owned car sales.
Notably, financing for new vehicle purchases has significantly evolved, soaring from 60% in 2010 to an impressive 84.2% in 2024, underscoring a growing dependency on loans. The used-car finance market is catching up, offering plentiful opportunities for financial stakeholders.
(With inputs from agencies.)
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