Four pre-owned cars were bought by Indians in 2024-25 for every three new cars sold in the same year, highlighting the growing importance of the used car market, which remains a largely unorganised market.
India’s pre-owned car market reached 5.9 million units in 2024-25 and is projected to grow at a 10 percent compounded annual growth rate (CAGR), reaching 9.5 million units by 2030, according to the 7th edition of the Indian Blue Book. The annual report is brought out by car&bike by Mahindra First Choice and Volkswagen Pre-owned Certified.
The used car segment will outpace the growth of the new car segment this year too. The new car segment is expected to reach 4.5—4.6 million units in 2025-26, a growth of 5-7 percent. Independent estimates suggest that the value of the used car market is around Rs 4 lakh crore.
The Indian Blue Book report also highlights a shift toward premiumization and consolidation. Sports utility vehicles (SUVs) now control more than 50% of the used car market, up from 23% just four years ago. The average selling prices have risen sharply by 36% over four years.
'Still dominated by unorganised players'
Though India’s used car market is huge, the industry, is dominated by unorganised players. Estimates suggest that at least 70 percent of the market is controlled by unregistered entities, such as players who operate through roadside garages. It also includes transactions done within families and between friends.
Mohammed Turra, Managing Director and CEO, Mahindra First Choice, said, “As organised platforms raise the bar for trust and service, we’re seeing a fundamental shift in how the used cars are being bought and sold. The used car is now a choice, not a fallback option”.
Non-metro buyers have emerged as the fastest-growing force, with 68 percent likely to buy a used car. Consumers are showing strong brand loyalty, with 42 percent willing to buy the same brand again, and a clear trend of upgrading to newer, safer pre-owned cars is emerging, as buyers increasingly value quality, safety ratings, and detailed technical specifications.
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