Press Release

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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