India Used Car Market to grow with a CAGR of 13.80% through 2030
The India Used Car Market is driven by rising disposable incomes, increasing urbanization, and growing demand for fuel-efficient and eco-friendly vehicles.
According to TechSci Research report, “India Used Car Market – By Region, Competition, Forecast & Opportunities, 2030F”, The India Used Car Market was valued at
USD 25.31 Billion in 2024 and is expected to reach USD 56.81 Billion by 2030
with a CAGR of 13.80% during the forecast period. The used car market in India has witnessed
significant growth due to factors such as rising incomes, an expanding middle
class, and increased demand for budget-friendly vehicles. Urban growth and the
need for personal transport have contributed to the expansion of this market,
with more consumers opting for second-hand cars over new models. The rise of
online platforms and digital tools has simplified the process of buying and
selling used cars, improving transparency and consumer confidence. As a result,
organized players such as original equipment manufacturers (OEMs) and online
car marketplaces are playing an increasingly dominant role in shaping market
trends.
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The used car market in
India is segmented by propulsion type, reflecting diverse consumer preferences
and changing environmental concerns. Petrol-powered vehicles remain a popular
choice due to their affordability, widespread availability, and lower maintenance
costs compared to diesel engines. The relatively lower upfront cost of petrol
cars, along with their better fuel efficiency for urban driving, makes them an
attractive option for many buyers. Diesel cars, while offering superior fuel
efficiency for long-distance travel, have seen a shift in consumer demand due
to increasing concerns over emission norms and rising fuel costs. Despite this,
they still maintain a significant presence in the market, especially among
buyers who require vehicles for commercial or long-haul purposes.
Electric vehicles (EVs) are
beginning to carve out a niche in the used car market as consumer awareness of
sustainability and cost-effectiveness grows. With the increasing availability
of used EVs at more affordable prices, buyers are drawn to their low operating
costs, zero emissions, and the potential for government incentives. Hybrid
vehicles, which combine both petrol and electric propulsion, offer a balance
between traditional fuel and electric power. These vehicles cater to consumers
who seek reduced fuel consumption and lower emissions but may not yet be ready
to fully transition to an electric-only vehicle. Other alternative fuels
such as CNG (Compressed Natural Gas) are also present in the used car market.
Vehicles powered by CNG provide a cleaner and more cost-efficient option than
petrol or diesel. This fuel type is increasingly seen as a viable option for
urban dwellers looking to reduce pollution and save on fuel expenses. With
growing emphasis on environmental concerns, the demand for cars with
alternative propulsion systems is gradually increasing, contributing to the
diversification of the used car market in India.
Based on region, In 2024, South India has
emerged as the fastest-growing region in the used car market. Cities like
Bengaluru, Chennai, Hyderabad, and Kochi are driving this expansion, fueled by
a combination of rising incomes, increased demand for personal mobility, and a
growing preference for cost-effective transportation. South India’s
well-developed infrastructure and high urbanization rates create a favorable
environment for the used car market. Many consumers in this region seek
second-hand vehicles as an affordable alternative to new cars, which are often
priced higher. The region's growing
interest in fuel-efficient vehicles, including electric and hybrid models, is
another factor contributing to the growth of the used car market. South India
is seeing a shift towards greener options, with consumers increasingly opting
for eco-friendly cars as part of the broader trend toward sustainability. The
availability of financing options and easy access to digital platforms for
buying and selling used cars have also contributed to the region's rapid market
growth. These platforms have simplified the car-buying process, making it more
accessible and transparent for consumers. With a rising middle class, expanding
urban centers, and a growing preference for used cars, South India is poised to
continue its upward trajectory in the coming years.
Some of the major companies
operating in the India used car market include:
- Cars24 Services Private Ltd.
- OLX India Private Limited
- Big Boy Toyz Pvt. Ltd.
- CarTrade Tech Ltd.
- Maruti Suzuki India Limited
- Girnar Software Private Limited (CarDekho)
- Mahindra & Mahindra Limited
- Honda Motor Co. Ltd.
- Ford Motor Company
- Toyota Motor Corporation
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"The growing demand for luxury and premium
pre-owned vehicles, driven by consumers seeking greater comfort, enhanced
safety, and better value for money, is significantly fueling the expansion of
India’s used car market. Alongside this, the increasing standard of living and
a growing middle class are contributing to the rising popularity of second-hand
luxury cars. Furthermore, the demand for off-roading vehicles, particularly
used SUVs, is gaining traction as more consumers seek adventure and recreational
driving options, further accelerating market growth. On the regulatory front,
the Indian government is enforcing stricter emission standards, and the rise in
demand for pre-owned electric vehicles (EVs) is expected to play a crucial role
in the growth of the used EV market in the coming years", said Mr. Karan
Chechi, Research Director of TechSci Research, a research-based global
management consulting firm.
"India Used Car Market By Vehicle Type (Hatchback, Sedan, SUV/MPV), By Propulsion
Type (Petrol, Diesel, Electric, Others (CNG, Hybrid, etc.)), By Sales Medium
(Offline, Online), By Vendor Type (Organized, Unorganized), By Sales Channel
(Dealerships/Broker, C2C), By Region, Competition, Forecast & Opportunities, 2020-2030F", evaluates
the future growth potential of the India used car market. It provides
comprehensive statistics and insights into the market size, structure, and
future growth projections. The report aims to deliver cutting-edge market
intelligence to help decision-makers make informed investment choices.
Additionally, it identifies emerging trends and analyzes key drivers,
challenges, and opportunities in the Indian used car market.
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