SUVs continued to rule the used-car market in 2024, and Maruti Suzuki Swift is the most-sought model in both metro and non-metros, a report by Cars24 on India's used-car market said.
The report, based on Cars24's internal data, has projected an annual sales of one crore units by 2030 in the car resale market. "The market is projected to grow from 4.6 million sales in CY23 to a whopping 10.8 million by CY30, cruising ahead with an impressive CAGR of 13 per cent," Cars24 co-founder Gajendra Jangid said.
Even with the launch of new models in recent years, cars like Hyundai Santro, Tata Tiago NRG, and Maruti Wagon R have 'consistently' delivered exceptional resale value, said the report. This underscored their popularity among budget-conscious and value-driven buyers. Hyundai i10 and Honda City follow Swift in terms of popularity across cities and regions, said the report. South India showed preference for more premium options like Swift, Alto and Honda City.
The report goes on to project that the used-car ownership in India will grow further, and by 2030, for every 10 new cars bought, there will be 17 used cars on the road. This trend underscores the demand for affordable mobility across urban and non-urban categories.
More than half of the buyers, 56% to be precise, are first-time car owners in the used vehicle market, with social media platforms, YouTube and online review forming the bulk of the inputs and feedback for buyers. The emergence of online apps and used car dealers reflects the growing dominance of digital tools and platforms.
Maharashtra, NCR region and Karnataka are the biggest drivers of demand for second hand cars, with the high GDP per capita in Maharashtra and high living costs fuelling demand for affordable options such as used vehicles. In the NCR region, Delhi's high registration cost, stricter environmental norms and high traffic load has made affordable cars as a preferred mode of transport. Haryana benefits from proximity to Delhi, while in UP, the road infrastructure expansion has been seen as a major driver of demand. In Karnataka's Bengaluru, tech-savvy
professionals and millennials prioritize affordable, compact, and fuel-efficient used
cars, said the report.
Cars24 report found that hatchbacks hold their value longer, while SUVs retain the highest resale value in the first three years due to minimal depreciation. Hatchbacks saw a fall in market share from 57% in 2022 to 53.4% in 2024 as buyers chose feature-heavy models. The demand for SUVs rose from 12.6% in 2022 to 16.7% in 2024, as more buyer chose their premium appeal, said Cars24.
Silver emerged as the most popular colour, preferred by more than 30% of the buyers, followed by white and red, with sunroof being the most-sought after feature.
The report also said that the financing for new cars has grown from 60% in 2010 to 84% in 2024, as more buyers rely on loans to own a vehicle.
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